Banks and the Finnish credit cycle 1986-1995

摘要: The study focuses on the role of deposit banks in makings Finnish credit cycle 1986-1995.A preliminary descriptive analysis suggests that banks' supply had a positive effect growth boom period and negative early 1990s.There are furthermore some indications moral hazard weak played expansion phase insuffient capital constrained lending later on, thus causing crunch. A theoretical model set up here one should examine effects both bank costs also look at issuance subordinated debt as means testing crunch hypotheses. An empirical behaviour 483 cooperative savings over second half 1980s gives strong support to hypothesis.In particular, aggregate would have been substantially less if their high enough eliminate incentives. By contrast, almost no evidence induced by is found an 313 1991 1992.Instead borrower creditworthiness demand underlined. Keywords: crunch, hazard, regulation, banking crisis