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Regional Inflation, Financial Integration and Dollarization (This is a revision of CentER DP 2013-073)

de Haas, R.; Brown, M.; Sokolov, V. - Tilburg University, Center for Economic Research - 2015

We exploit variation in consumer price inflation across 71 Russian regions to examine the relationship between the perceived stability of the domestic currency and financial dollarization. Our results show that regions with higher inflation experience an increase in the dollarization of...

Persistent link: https://www.econbiz.de/10011199227

Currency Denomination of Bank Loans : Evidence from Small Firms in Transition Countries

Brown, M.; Ongena, S.; Yesin, P. - Tilburg University, Center for Economic Research - 2008

We examine the firm-level and country-level determinants of the currency denomination of small business loans. We introduce an information asymmetry between banks and firms in a model that also features the trade-off between the cost of debt and firm-level distress costs. Banks in our model...

Persistent link: https://www.econbiz.de/10011092691

Information Asymmetry and Foreign Currency Borrowing by Small Firms

Brown, M.; Ongena, S.; Yesin, P. - Tilburg University, Center for Economic Research - 2011

We model the choice of loan currency in a framework which features a trade-off between lower cost of debt and the risk of firm-level distress costs. Under perfect information foreign currency funds come at a lower interest rate, all foreign currency earners as well as those local currency...

Persistent link: https://www.econbiz.de/10011091089

Foreign Currency Loans - Demand or Supply Driven?

Brown, M.; Kirschenmann, K.; Ongena, S. - Tilburg University, Center for Economic Research - 2009

Motivated by current concerns over foreign currency exposures in emerging economies, we examine the currency denomination of business loans made in Bulgaria prior to the current crisis. We analyze information on the requested and granted currency for more than hundred thousand loans granted by...

Persistent link: https://www.econbiz.de/10011091639

Relational Contracting Under the Threat of Expropriation – Experimental Evidence

Brown, M.; Serra Garcia, M. - Tilburg University, Center for Economic Research - 2010

of funds. We implement credit relationships in which repayment is not third-party enforceable, i.e. borrowers can default … default they cannot reinvest these funds in future periods. We find that potential expropriation decreases the overall volume … of credit as lenders offer smaller loans in initial periods. Borrowers are more likely to default in earlier periods of …

Persistent link: https://www.econbiz.de/10011091706

Foreign Currency Lending in Emerging Europe : Bank Level Evidence

Brown, M.; de Haas, R. - Tilburg University, Center for Economic Research - 2010

Based on survey data from 193 banks in 20 countries we provide the first bank-level analysis of the determinants of foreign currency (FX) lending in Emerging Europe. We find that FX lending by all banks, regardless of their ownership structure, is strongly determined by the macroeconomic...

Persistent link: https://www.econbiz.de/10011091858

Regional Inflation and Financial Dollarization

Brown, M.; de Haas, R.; Sokolov, V. - Tilburg University, Center for Economic Research - 2013

Abstract: We exploit variation in consumer price inflation across 71 Russian regions to examine the relationship between the perceived stability of the local currency and financial dollarization. Our results show that regions with higher inflation experience an increase in the dollarization of...

Persistent link: https://www.econbiz.de/10011092469

Who Needs Credit and Who Gets Credit in Eastern Europe?

Brown, M.; Ongena, S.; Popov, A.; Yesin, P. - Tilburg University, Center for Economic Research - 2010

Based on survey data covering 8,387 firms in 20 countries we compare credit demand and credit supply for firms in Eastern Europe to those for firms in selected Western European countries.

Persistent link: https://www.econbiz.de/10011092505