Cover IMF Working Papers
Recent Credit Stagnation in the Mena Region: What to Expect? What Can Be Done?
Author: Mr. Ralph Chami, Mr. Raphael A Espinoza, Mr. Adolfo Barajas, and Mr. Heiko Hesse
Series:
IMF Working Papers
Volume/Issue:
Volume 2010: Issue 219
Language:
English
Publication Date:
01 Sep 2010
DOI:
https://doi.org/10.5089/9781455208845.001
ISBN:
9781455208845
ISSN:
1018-5941
Pages:
19
Keywords:
WP; bank; credit growth; central bank; Credit boom; deposit; banks balance sheet; credit slowdown; bank soundness argument; GDP ratio; bank capital; lending growth; credit culture; Credit; Credit booms; Bank credit; Financial statements; Oil prices; Global
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IMF Working Papers describe research in progress by the author(s) and are published to elicit comments and to encourage debate. The views expressed in IMF Working Papers are those of the author(s) and do not necessarily represent the views of the IMF, its Executive Board, or IMF management.
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This paper examines the recent credit slowdown among Middle Eastern and North African (MENA) countries from three analytical angles. First, it finds that, similar to other regions and to its past history, a credit boom preceded the current slowdown, and that a protracted period of sluggish growth is likely going forward. Second, it uncovers a key role played by bank funding (deposit growth and external borrowing slowed considerably) but whose effect was frequently dampened by expansionary monetary policy. Third, bank-level fundamentals - capitalization and loan quality - helped to explain differences in credit growth across banks and countries.
Cover IMF Working Papers
IMF Working Papers
ISSN:
1018-5941
Publisher:
International Monetary Fund