The paper is an update through early 1994 of a similarly titled paper (Bank of Finland Discussion Papers 8/93). It gives a brief description of the evolution of the Finnish banking crisis and its handling. In the first section, the salient features of the Finnish banking system are described. We...

The paper analyzes bank loan supply in a simple value maximizing partial equilibrium framework. The focus is on the role of bank capital, capital regulation and the pricing of bank liabilities. The model is constructed so as to resemble the situation of the Finnish local banks in the late 1980s...

The paper focuses on the proximate causes of the Finnish savings and cooperative banks' non-performing assets in the current banking crisis. Specifically, the effects of the lending structure at the outset of the crisis and the rate of growth of lending in the latter half of the 1980s are...

The paper examines the role of bank relationships in business closures during the Finnish economic crisis of the early 1990s. We utilise a unique panel data set of 474 small and medium-sized firms, for which we have standard accounting information and for which we can in addition identify...

The paper examines the determination of bank lending during the Finnish credit boom of 1986–1990 with the data of 483 savings and cooperative banks. A particular objective is to establish whether bank behaviour is consistent with what is called moral hazard hypothesis, according to which banks...

The paper gives a brief description of the evolution of the Finnish banking crisis and its handling. In the first section, the salient features of the Finnish banking system are described. We then briefly discuss the liberalization process, macroeconomic and regulatory policies, and the...

The paper examines the determination of bank lending in the early 1990s with the data on 393 savings and cooperative banks. Particular attention is paid to the respective roles of bank capital and costs on the one hand and borrower quality on the other hand. The findings do not support the...

The paper discusses the possibility that the workings of the financial system contributed the boom-bust cycle in the Finnish credit market since the mid-1980s. We begin with a review of the most prominent theoretical arguments about the role of "financial factors". Also the main findings of a...