On the Role of Bank Competition for Corporate Finance and Corporate Control in Transition Economies PDF Download

Author: Monika Schnitzer
Publisher:
ISBN:
Category : Bank investments
Languages : en
Pages : 50

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Author: Monika Schnitzer
Publisher:
ISBN:
Category : Banks and banking
Languages : en
Pages : 40

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Author: Sofika Nazaj
Publisher:
ISBN:
Category :
Languages : en
Pages : 10

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The Albanian banking system coming from a centralized economy's heritage went through a long transition phase, to be converted, during recent years, into a modern banking system, reflecting the developing market economy in Albania, with many country-specific features. Given such characteristics, and the fact that the new market economy in Albania with still-to-be-consolidated businesses and relatively a big number of banks, with lots of cheap funds to lend, there has been room for a stiff, if rather unfair competition among banks for market share, thus causing a low-quality loan portfolio and liquidity problems in the market. New entrants in the banking market, mainly foreign ones, may have induced too much entry and relatively too many bad loans. Notwithstanding positive effects of banking competition during the entry phase, banks have adopted and seek very high targets on lending, therefore funding risky projects, which failed to produce success stories. When twinning this fact with the actual global and local financial crises, the situation is practically affecting the stability of the banking system in Albania. The paper analyzes and investigates how bank competition affects efficiency of credit allocation, using the historic data of the last decade, and provides some recommendations on improving lending practices, procedures, portfolio diversification, aiming to preserve the stability of the banking system in Albania.

Author: Christa Hainz
Publisher:
ISBN:
Category :
Languages : en
Pages :

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In transition economies, banks do not yet play a crucial role in financing investment. We explain the low degree of bank intermediation by investigating credit offers by monopolistic, oligopolistic, and competitive banks with a particular focus on collateral. The more market power that banks have the more collateral they demand, because collateral is used not only to solve the moral hazard problem but also to extract rents. We find that asymmetric information about the firm's assets and, hence, possible collateral, leads to credit rationing. Empirical evidence from Romania and Estonia confirms the results of our theoretical model.

Author: David Green
Publisher: Edward Elgar Publishing
ISBN: 9781781950296
Category : Business & Economics
Languages : en
Pages : 248

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'...this book would be suited to lawyers and non-lawyers alike. In addition, it provides an interesting look at the EU banking system and the systems of Central and Eastern European countries.' - Ellie Palmer, Journal of International Banking Law and Regulation The eastwards expansion of the European Union is one of the most explosive economic and political issues of the early 21st century. Economic and financial stability combined with rising prosperity in the applicant countries are increasingly seen as necessary preconditions for European Union membership. This authoritative volume, written by scholars and practitioners from Central and Western Europe and the United States, confronts the issues involved in three of the countries most likely to be successful applicants to the EU - the Czech Republic, Hungary and Slovenia. A spotlight is turned on the banking and financial industries, as they are crucial to the achievement of economic stability. The blend of expertise deployed, which draws on in-depth knowledge and extensive experience in central banking, financial and commercial law, business, practical policy making and economic analysis, ensures that this book is timely, relevant and insightful. The authors suggest that the role of the state in both creating and maintaining an effective financial sector is central. Furthermore, they argue that well-regulated commercial banks and strategic foreign investors are a must as, in practice, the attempt to skip straight to modern capital markets has been ruinous. This accessibly written volume will be of interest to students and scholars of economics, finance, law, political science, the sociology of economic life and European studies.

Author: Monika Schnitzer
Publisher:
ISBN:
Category :
Languages : en
Pages :

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We investigate how bank competition affects the efficiency of credit allocation, using a model of spatial competition. Our analysis shows that bad loans are more likely the larger the number of banks competing for customers. We study further how many banks will be active if market entry is not regulated. Free entry can induce too much entry and thus too many bad loans compared to the social optimum. Finally we analyse how bank competition affects the restructuring efforts of firms. We find that restructuring has positive externalities which give rise to multiple equilibria, with either much or little restructuring activity.

Author: World Bank
Publisher: Washington, D.C. : The World Bank
ISBN:
Category : Business & Economics
Languages : en
Pages : 500

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Author: M. Marinov
Publisher: Springer
ISBN: 0230337015
Category : Business & Economics
Languages : en
Pages : 335

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Book Description
Staying at the pinnacle of the advancing business development of transition economies and the impact of changing business conditions is a challenging task for all firms wanting to do business in them. This book provides insight into the way in which businesses function with a comprehensive overview of the major aspects involved.

Author: Alexander Fleming
Publisher: World Bank Publications
ISBN: 9780821348147
Category : Business & Economics
Languages : en
Pages : 302

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Book Description
This book contains 21 papers focusing on a wide range of issues concerning financial sector transition in the countries of Europe and Central Asia (ECA). It places the transition economies in the context of recent and prospective developments in global financial markets. This book also evaluates the experience of the last 10 years and reviews the progress from a command financial system to a market-based one, identifying some of the key characteristics of the financial transition.

Author: Monika Schnitzer
Publisher:
ISBN:
Category :
Languages : en
Pages : 30

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