Using a database from post-communist, pre-deposit-insurance Russia, we demonstrate the presence of quantity-based sanctioning of weaker banks by both firms and households, particularly after the financial crisis of 1998. Evidence for the standard form of price discipline, however, is notably...

This paper demonstrates how the behavior of credit markets in a transition-like environment can be a function of the market structure in the commercial lending sector that was inherited from the pre-reform economy. Using a game theoretic model, we investigate one possible explanation for how a...