This study investigates the extent to which institutional characteristics are related to countries' level of credit depth. The findings suggest that the development of formal property rights, contracting, and competition institutions is positively related to an increase in credit to the private...

It is well-known that the extent of credit lent to private agents differs widely between countries. The `financial deepening' of the economy offers opportunities as well as financial risks. This study investigates the extent to which institutional characteristics are re- lated to countries'...