Explaining the Behavior of Financial Intermediation Evidence from Transition Economies

This paper investigates the effects of macroeconomic and structural variables on financial intermediation. To this end, it presents a theoretical foundation for two new measures of intermediation, the money multiplier and the ratio of private sector credit to monetary base. Results from panel estima...

Full description

Bibliographic Details
Main Author: Rother, Philipp
Format: eBook
Language:English
Published: Washington, D.C. International Monetary Fund 1999
Series:IMF Working Papers
Subjects:
Online Access:
Collection: International Monetary Fund - Collection details see MPG.ReNa
LEADER 02605nmm a2200601 u 4500
001 EB000929556
003 EBX01000000000000000723152
005 00000000000000.0
007 cr|||||||||||||||||||||
008 150128 ||| eng
020 |a 9781451845433 
100 1 |a Rother, Philipp 
245 0 0 |a Explaining the Behavior of Financial Intermediation  |b Evidence from Transition Economies  |c Philipp Rother 
260 |a Washington, D.C.  |b International Monetary Fund  |c 1999 
300 |a 32 pages 
651 4 |a Estonia, Republic of 
653 |a Depository Institutions 
653 |a Inflation 
653 |a Credit 
653 |a Banks 
653 |a Finance 
653 |a Industries: Financial Services 
653 |a Banks and banking 
653 |a Monetary economics 
653 |a Financial institutions 
653 |a Deflation 
653 |a Monetary Policy, Central Banking, and the Supply of Money and Credit: General 
653 |a Micro Finance Institutions 
653 |a Financial Institutions and Services: Government Policy and Regulation 
653 |a Mortgages 
653 |a Nonperforming loans 
653 |a Money 
653 |a Money supply 
653 |a Price Level 
653 |a Monetary base 
653 |a Loans 
653 |a Financial markets 
653 |a Banks and Banking 
653 |a Financial Markets and the Macroeconomy 
653 |a Prices 
653 |a Macroeconomics 
653 |a Financial services industry 
653 |a Banking 
653 |a Financial sector development 
653 |a Money and Monetary Policy 
653 |a Finance: General 
041 0 7 |a eng  |2 ISO 639-2 
989 |b IMF  |a International Monetary Fund 
490 0 |a IMF Working Papers 
028 5 0 |a 10.5089/9781451845433.001 
856 4 0 |u https://elibrary.imf.org/view/journals/001/1999/036/001.1999.issue-036-en.xml?cid=2909-com-dsp-marc  |x Verlag  |3 Volltext 
082 0 |a 330 
520 |a This paper investigates the effects of macroeconomic and structural variables on financial intermediation. To this end, it presents a theoretical foundation for two new measures of intermediation, the money multiplier and the ratio of private sector credit to monetary base. Results from panel estimations covering 19 transition economies indicate that policy makers need to address in particular the problems of bad loans on bank balance sheets and high market concentration while maintaining a stable macroeconomic environment. Further variables, such as minimum reserve requirements and the capital adequacy ratio, are found to possess less explanatory power