The boom in household lending in transition countries: A Croatian case study and a cross-country analysis of determinants

Abstract

Since the mid-1990s, the transition countries of Central and South East Europe have made major strides in restructuring their banking systems. A wave of foreign investment in banking has occurred, resulting in foreign bank ownership of a majority of bank assets in almost all of the countries. This has also been accompanied by strengthening of banking supervision, and improvements in the legal environment. A much more competitive environment has resulted, and the quality of the banking system seems vastly improved.