Financial Crisis, Economic Recovery and Banking Development in Russia, Ukraine, and Other FSU Countries

This paper provides a unified analysis for the onset of the 1998 financial crisis and the strong economic recovery afterward in Russia and other former Soviet Union countries. Before the crisis a banking failure arose owing to the coexistence of a lemons credit market and high government borrowing....

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Bibliographic Details
Main Author: Marin, Dalia
Other Authors: Huang, Haizhou, Xu, Chenggang
Format: eBook
Language:English
Published: Washington, D.C. International Monetary Fund 2004
Series:IMF Working Papers
Subjects:
Online Access:
Collection: International Monetary Fund - Collection details see MPG.ReNa
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245 0 0 |a Financial Crisis, Economic Recovery and Banking Development in Russia, Ukraine, and Other FSU Countries  |c Dalia Marin, Haizhou Huang, Chenggang Xu 
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300 |a 37 pages 
651 4 |a Russian Federation 
653 |a Economic & financial crises & disasters 
653 |a Depository Institutions 
653 |a Credit 
653 |a Commercial banks 
653 |a Government securities yields 
653 |a Banks 
653 |a Financial crises 
653 |a Banks and banking 
653 |a Monetary economics 
653 |a Financial institutions 
653 |a Saving and Capital Investment 
653 |a Monetary Policy, Central Banking, and the Supply of Money and Credit: General 
653 |a Micro Finance Institutions 
653 |a General Financial Markets: General (includes Measurement and Data) 
653 |a Asymmetric and Private Information 
653 |a Mortgages 
653 |a Economic Development: Financial Markets 
653 |a Money 
653 |a Banks and Banking 
653 |a Investments: General 
653 |a Bank credit 
653 |a Banking 
653 |a Investment & securities 
653 |a Socialist Institutions and Their Transitions: Financial Economics 
653 |a Financial Risk Management 
653 |a Money and Monetary Policy 
653 |a Government securities 
653 |a Financial Crises 
653 |a Corporate Finance and Governance 
700 1 |a Huang, Haizhou 
700 1 |a Xu, Chenggang 
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520 |a This paper provides a unified analysis for the onset of the 1998 financial crisis and the strong economic recovery afterward in Russia and other former Soviet Union countries. Before the crisis a banking failure arose owing to the coexistence of a lemons credit market and high government borrowing. In a lemons credit market low credit risk firms switched from bank to nonbank finance, including trade credits and barter trade, generating an externality on banks' interest rates. The collapse of the treasury bills market in the financial crisis triggered a change in banks' lending behavior, providing initial conditions for banking development