Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/93960
Authors: 
Huang, Haizhou
Marin, Dalia
Xu, Chenggang
Year of Publication: 
2004
Series/Report no.: 
SFB/TR 15 Discussion Paper 79
Abstract: 
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.
Subjects: 
banking development
institutional trap
financial crisis
JEL: 
G3
G21
P34
O16
D82
Persistent Identifier of the first edition: 
Document Type: 
Working Paper

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