Relationship-Based and Arms-Length Financial Systems : A European Perspective

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.

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Bibliographic Details
Main Author: Wolf, Holger
Language:English
Published: 2011-10-01
Subjects:ACCESS TO EXTERNAL FINANCE, ACCOUNTING, ACCOUNTING STANDARDS, ALTERNATIVE FUNDING, BANK POLICY, BANK SECURITIES, BANKING MARKET, BANKING SYSTEM, BANKRUPTCY, BOND, BOND MARKETS, BORROWING, BUSINESS PRACTICES, CAPITAL MARKETS, CENTRAL BANKING, CO-OPERATIVE BANKS, COMMON LAW, CONSOLIDATION, CONTRACT DISPUTES, CONTRACT ENFORCEMENT, CORPORATE DEBT, CORPORATE DEBT MARKETS, CORPORATE GOVERNANCE, CORPORATE GOVERNANCE STANDARDS, COUNTRY COMPARISONS, CREDIT GROWTH, DEPOSITS, DISCLOSURE REQUIREMENTS, DISCLOSURE STANDARDS, DISPUTE RESOLUTION, DOMESTIC BANKS, DOMESTIC CURRENCY, DOMESTIC FINANCIAL MARKETS, DURABLE, ECONOMIC CHARACTERISTICS, ECONOMIC DEVELOPMENT, ECONOMIC GROWTH, ECONOMIC PERFORMANCE, ECONOMICS, ECONOMIES OF SCALE, EQUITY MARKETS, EQUITY STAKES, EXTERNAL FINANCE, EXTERNAL FINANCING, EXTERNAL FUNDING, FINANCIAL CRISES, FINANCIAL CRISIS, FINANCIAL DEVELOPMENT, FINANCIAL INSTITUTION, FINANCIAL INSTITUTIONS, FINANCIAL INTERMEDIATION, FINANCIAL MARKET, FINANCIAL MARKETS, FINANCIAL RELATIONSHIPS, FINANCIAL SECTOR, FINANCIAL SECTOR POLICIES, FINANCIAL SERVICES, FINANCIAL STRUCTURE, FINANCIAL STRUCTURES, FINANCIAL SYSTEM, FINANCIAL SYSTEM DEVELOPMENT, FINANCIAL SYSTEMS, FINANCIAL TRANSACTIONS, FIRM GROWTH, FOREIGN BANKS, FOREIGN CURRENCY, FOREIGN CURRENCY DEPOSITS, FOREIGN FINANCIAL INSTITUTIONS, FUNDING SOURCES, GOVERNANCE STANDARDS, HOME COUNTRIES, HOST COUNTRY, HOUSEHOLDS, INFORMATION ACQUISITION, INFORMATION ASYMMETRY, INFORMATION DISCLOSURE, INSTITUTIONAL INFRASTRUCTURE, INSURANCE, INTANGIBLE, INTANGIBLE ASSETS, INTERNATIONAL BANK, INTERNATIONAL FINANCIAL INTEGRATION, INVESTMENT PROJECTS, INVESTOR PROTECTION, LEGAL DISPUTE, LEGAL SYSTEM, LEGAL SYSTEMS, LENDERS, LIQUIDITY, LOCAL CURRENCY, LONG-TERM FUNDING, LONG-TERM INSTRUMENTS, LONG-TERM INVESTMENT, MARKET ECONOMIES, MARKET EFFICIENCY, PERMANENT SHOCKS, PRIVATE BOND, PRODUCTIVITY, PROTECTION OF MINORITY SHAREHOLDER, RETURNS, SAVINGS, SECURITIES, SECURITIES HOLDINGS, SMALL BUSINESS, SPECIALIZED BANKS, START-UPS, STOCK MARKET, STOCK MARKET DEVELOPMENT, STRUCTURAL ADJUSTMENT, SUBSIDIARIES, TAX, TAX LAWS, TRANSACTION, TRANSITION ECONOMIES, UNION, UNIVERSAL BANKS, VALUATION, VENTURE CAPITAL,
Online Access:http://www-wds.worldbank.org/external/default/main?menuPK=64187510&pagePK=64193027&piPK=64187937&theSitePK=523679&menuPK=64187510&searchMenuPK=64187283&siteName=WDS&entityID=000158349_20111005140442
https://hdl.handle.net/10986/3597
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