Credit Growth and Bank Soundness
Download or Read eBook Credit Growth and Bank Soundness PDF written by Ms.Deniz Igan and published by International Monetary Fund. This book was released on 2011-12-01 with total page 27 pages. Available in PDF, EPUB and Kindle.
Author | : Ms.Deniz Igan |
Publisher | : International Monetary Fund |
Total Pages | : 27 |
Release | : 2011-12-01 |
ISBN-10 | : 9781463925956 |
ISBN-13 | : 1463925956 |
Rating | : 4/5 (56 Downloads) |
Book Synopsis Credit Growth and Bank Soundness by : Ms.Deniz Igan
Book excerpt: We examine the risks to bank soundness associated with credit booms in a large set of countries. Using bank-level data in 90 countries between 1995 and 2005, we analyze the relationship between credit growth and bank soundness taking into account the potential two-way causality. We find that, while sounder banks tend to grow faster at moderate-growth periods, credit growth becomes less dependent on soundness during booms. These findings shed some light on why credit booms are often associated with financial crises.