Although the performance and privatization of transition banks have been widely studiedalready, little is known about their risk taking and risk management activities. We use a new EBRD survey data set of banks to examine risk taking by banks in the transition countries. We find no indication of...

This paper explores how the legal environment affects bank behavior in 20 transition economies. Based on a newly constructed data set we find that banks loan portfolio composition depends on the legal environment. If banks operate in a well-functioning legal environment they lend relatively more...