How Corruption Affects Bank Lending in Russia
33 Pages Posted: 20 Nov 2008
There are 2 versions of this paper
How Corruption Affects Bank Lending in Russia
How Corruption Affects Bank Lending in Russia
Date Written: November 10, 2008
Abstract
The aim of this study is to investigate the impact of corruption on bank lending in Russia. This issue is of major interest in order to understand the causes of financial underdevelopment and the effects of corruption in Russia. We use regional measures of corruption and bank-level data to perform this investigation. Our main estimations show that corruption hampers bank lending in Russia. We investigate whether this negative role of corruption is influenced by the degree of bank risk aversion, but find no effect. The detrimental effect of corruption is only observed for loans to households and firms, in opposition to loans to government. Additional controls confirm the detrimental impact of corruption on bank lending. Therefore, our results provide motivations to fight corruption to favor bank lending in Russia.
Keywords: corruption, bank, Russia, financial development, economic tansition
JEL Classification: G20, K4, P2
Suggested Citation: Suggested Citation
Do you have a job opening that you would like to promote on SSRN?
Recommended Papers
-
Bank Performance, Efficiency and Ownership in Transitition Countries
By John Bonin, Paul Wachtel, ...
-
Bank Ownership and Performance
By Alejandro Micco, Ugo Panizza, ...
-
By Allen N. Berger, George R. G. Clarke, ...
-
By David Grigorian and Vlad Manole
-
Why Privatize? The Case of Argentina's Public Provincial Banks
By Robert Cull and George R. G. Clarke
-
Privatization Matters: Bank Efficiency in Transition Countries
By John Bonin, Paul Wachtel, ...
-
Privatization Matters: Bank Efficiency in Transition Countries
By John Bonin, Paul Wachtel, ...
-
Privatization Matters: Bank Efficiency in Transition Countries
By John Bonin, Iftekhar Hasan, ...