COMPARATIVE ANALYSIS OF CREDIT GROWTH AND BANK LENDING CHANNEL AMONG THE SOUTH EASTERN EUROPEAN ECONOMIES DURING THE PERIODS OF ECONOMIC GROWTH AND ECONOMIC RECESSION

Jane Bogoev

Jane Bogoev National Bank of the Republic of Macedonia and Staffordshire University, UK

Keywords: monetary policy, credit growth, bank lending channel, Central and South Eastern Europe

Abstract

The main aims of this analysis are to assess the credit growth and whether the bank lending channel is operational among the economies from South Eastern Europe during the two periods: a) period of relatively stable macroeconomic environment and economic growth: 2004-2008 and b) period of economic recession:2009Q1 and 2010Q1. In order to investigate these issues, we aim to provide a brief assessment of the keycentral bank interest rate movements, the major developments on the deposit market as a major source of financing of banks' lending activities and the credit growth. The data presented, indicate that in all almost all SEE economies there have been an episode of "credit boom" during the period of economic growth (2004-2008). An exception from this is Croatia that had two episodes of "credit boom" that occurred much earlier. Regarding the existence of the bank lending channel, the data presented and the results from the correlation coefficient imply that probably in all SEE economies, apart from Croatia, the bank lending channel is not operational.

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