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Please use this identifier to cite or link to this item:
http://hdl.handle.net/2451/26078
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| Title: | Institutions and Bank Behavior |
| Authors: | Wachtel, Paul
Haselmann, Rainer |
| Keywords: | law and finance
bank lending
loan portfolio
collateral |
| Issue Date: | 20-May-2007 |
| Series/Report no.: | EC-06-16 |
| Abstract: | This paper explores how the legal environment affects bank behavior in
20 transition economies. Based on a newly constructed data set we find
that banks’ loan portfolio composition depends on the legal
environment. If banks operate in a well-functioning legal environment
they lend relatively more to SMEs and provide more mortgages. On the
other hand, banks lend more to large enterprises and to the government
if the legal system is unsound. As a transmission channel we identify
the banks’ willingness to accept collateral which depends on the
bankers’ perceptions of the prevailing laws regarding collateral. |
| URI: | http://hdl.handle.net/2451/26078 |
| Appears in Collections: | Economics Working Papers
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