Details

Credit Market Behaviour During the 1990´s Scandinavian Banking Crisis : A case study of Sweden, Finland, Denmark and Norway

by Broden, Dag; Flyg, Johan

Abstract (Summary)

 

This bachelor thesis examines the credit market behaviour in the Scandinavian countries (Sweden, Finland, Denmark and Norway), post financial liberalization, during the late 1980´s and early 1990´s. The explanatory variables used to determine bank lending are the time lags of bank lending, property prices, GDP and interest rates.

The variables’ impact on bank lending is tested and displayed by using an OLS model,presented by Goodhart and Hofmann (2007), and descriptive statistics.

The rolling OLS regressions show that during times of financial liberalization, property prices had an increased effect on real bank lending in Sweden and Finland. The same investigation method supports that although positive, property prices’ effect on lending did not increase in Norway and Denmark. Even so, investigations suggest that one should be careful to assume too many similarities between the countries in the causing factors of the crises. The crises occurred roughly during the same time, and the geographical connection is obvious, however each country’s individual factors differed from each other.

 

Bibliographical Information:

Advisor:

School:Högskolan i Jönköping

School Location:Sweden

Source Type:Master's Thesis

Keywords:credit financial crisis house prices liberalization economics nationalekonomi

ISBN:

Date of Publication:01/01/2008

© 2009 OpenThesis.org. All Rights Reserved.