Credit cycle in Central and Eastern Europe - Determinants of demand and supply
Abstract
The economies of Central and Eastern Europe (CEE) characterize with common credit cycle. The rise and fall of volume of credit depends on both demand and supply factors. For the period 2005 – 2015 it could separate two stages: first – before the crisis in 2008, demand and supply of credit raise and it led to credit expansion; second – after the crisis in 2008 – demand and supply fell sharply and credit changes in the same direction. During different stages the factors driving the demand and supply for credit are changed deeply. The research uses panel data approach. It has found common tendencies in credit cycle for the countries in CEE. For the countries in CEE the volume of credit depends on the disposal resources very strong. By the first group of countries researched the overnight deposits influence on credit volume. In this group are Poland, Check Republic and Slovakia. Second group of countries, including Bulgaria, Romania and Hungary, the volume of credit depends on more of time deposits.
This work is licensed under a Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 International License.
By submitting a paper for publishing the authors hereby comply with the following provisions: 1. The authors retain the copyrights and only give the journal the right for first publication while licensing the work under Creative Commons Attribution License, which grants permissions to others to share the contribution citing this journal as first publication of the text. 2. The authors may enter separate, additional contractual relations for non-exclusive distribution of the published version of the work in this journal (e.g. to upload it in an institutional depository, or to be published in a book), given that they cite the first publication in this journal. 3. The authors are allowed and are encouraged to publish their works online (e.g. to upload it in an institutional depository, personal websites, social networks, etc.) before, during, and after the submission of the paper here, because this may lead to productive exchange, as well as earlier and larger referencing of the published works (see The Effect of Open Access).
