Credit booms and busts in emerging markets. The role of bank governance and risk management
Journal
The Economics of Transition
ISSN
0967-0750
ISSN-Digital
1468-0351
Type
journal article
Date Issued
2017-04-12
Author(s)
Abstract
We investigate to what extent corporate governance and risk management mitigate the involvement of banks in credit boom and bust cycles. We study a unique, hand-collected dataset covering 156 banks from Central and Eastern Europe during 2005–2012. We document that stronger risk management is associated with more moderate pre-crisis credit growth but not with fewer credit losses in the crisis. With respect to bank governance, we find that a higher share of foreign members on the supervisory board is associated with less rapid credit growth in the pre-crisis period and a lower level of credit losses during the crisis period.
Language
English
HSG Classification
contribution to scientific community
Refereed
Yes
Publisher
Wiley-Blackwell
Publisher place
Oxford [u.a.]
Volume
25
Number
3
Start page
377
End page
437
Subject(s)
Contact Email Address
martin.brown@unisg.ch
Eprints ID
250942