Relationship-Based and Arms-Length Financial Systems -- a European Perspective
14 Pages Posted: 20 Apr 2016
Date Written: October 1, 2011
This paper surveys the debate on arms-length and relationship-based financial systems with a special focus on the Eastern Europe and Central Asia region. The paper argues that while the initial dominance of relationship-based systems in the region is consistent with the implications of the theoretical literature, the subsequent improvements in supporting institutions coupled with structural changes suggests a greater scope for arms-length elements going forward.
Keywords: Debt Markets, Banks & Banking Reform, Access to Finance, Emerging Markets, Financial Intermediation
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