Forecasting credit growth rate in Romania: from credit boom to credit crunch?
Claudiu Albulescu ()
MPRA Paper from University Library of Munich, Germany
The specialists paid a special attention to credit growth in the transitions countries due to its sharp increase during the last years. However, once the financial crisis started in 2008, the credit activity evolution reversed. Consequently, forecasting the credit trend has become a subject of interest in the context of the present financial and economic conditions, because the credit market blockage has a negative impact on economic activity revival and leads to the amplification of the uncertainty on financial markets. The main objective of this paper is to highlight the recent credit developments in Romania and to predict their future evolution. Based on the credit growth rate endogenous factors and using a stochastic simulation econometric model, we demonstrate that this economy experiences a passage from a credit boom to a severe credit crunch. The forecasting exercise results show a credit activity contraction up to the end of 2009, demolishing the expectations related to a near economic recovery in Romania.
Keywords: credit growth rate; forecasts; stochastic simulation; credit crunch (search for similar items in EconPapers)
JEL-codes: C53 E51 C15 (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-ban, nep-for and nep-tra
Date: 2009-07-26, Revised 2009-08-10
References: View references in EconPapers View complete reference list from CitEc
Citations View citations in EconPapers (2) Track citations by RSS feed
Downloads: (external link)
https://mpra.ub.uni-muenchen.de/16740/1/MPRA_paper_16740.pdf original version (application/pdf)
Journal Article: FORECASTING CREDIT GROWTH RATE IN ROMANIA: FROM CREDIT BOOM TO CREDIT CRUNCH? (2010)
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
Persistent link: https://EconPapers.repec.org/RePEc:pra:mprapa:16740
Access Statistics for this paper
More papers in MPRA Paper from University Library of Munich, Germany Ludwigstraße 33, D-80539 Munich, Germany. Contact information at EDIRC.
Series data maintained by Joachim Winter ().