Financial Markets, Credit Constraints, and Investment in Rural Romania

Financial Markets, Credit Constraints, and Investment in Rural Romania

The report assesses the performance of financial markets in rural areas of Romania, based on three - rural household, rural enterprise, and financial intermediary - surveys, carried out in 1998, and other official data covering 1997. The study find...

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Bibliographic Details
Main Authors: Chaves, Rodrigo A., Sanchez, Susana, Schor, Saul, Tesliuc, Emil
Format: Publication
Language:English
en_US
Published: Washington, DC: World Bank 2013
Subjects:
MARKET ANALYSIS
FINANCIAL MANAGEMENT
CREDIT MARKETS
CREDIT RESTRAINT
INVESTMENT BARRIERS
RURAL FINANCE
HOUSEHOLD SURVEYS
FINANCIAL INTERMEDIATION
ACCESSIBLE SERVICES
FINANCIAL SERVICES
RURAL ECONOMIC DISPARITIES
FINANCIAL VOLATILITY
INFLATION RATES
LEGAL & REGULATORY FRAMEWORK
AGRICULTURAL SUBSIDIES
POLICY REFORM
INTERVENTION STRATEGIES
INSTITUTIONAL FRAMEWORK
RETAIL MARKETING ACCOUNTING
ACCOUNTING RECORDS
AGRICULTURE
AQUIFERS
BANK BRANCHES
BANK DEPOSITS
BANKING SECTOR
BANKING SYSTEM
BANKS
BOOK VALUE
BORROWING
CAPITAL ADEQUACY
CASH FLOW ANALYSIS
CASH FLOWS
COLLATERAL
COMMERCIAL BANKS
COMMERCIAL CREDIT
CONSOLIDATED FINANCIAL STATEMENTS
CONSOLIDATION
CREDIT RISK
DEBT
DEPOSITS
DEPRECIATION
DEVELOPMENT POLICIES
DUAL ECONOMY
ECOLOGY
ECONOMIC REFORM
ECONOMIC RESEARCH
ECONOMIC SECTORS
ECONOMICS
EMPIRICAL ANALYSIS
EMPIRICAL EVIDENCE
EMPIRICAL INFORMATION
EMPLOYMENT
ENVIRONMENTAL PERFORMANCE
EXCHANGE RATE
FARMS
FINANCIAL INSTITUTIONS
FINANCIAL INTEGRATION
FINANCIAL INTERMEDIARIES
FINANCIAL MARKETS
FINANCIAL PERFORMANCE
FINANCIAL SECTOR
FINANCIAL TRANSACTIONS
FOREST MANAGEMENT
FORESTRY
GDP
GROWTH RATE
INCOME
INFLATION
INFLATION RATE
INTEREST RATE
INTEREST RATES
INTERNATIONAL TRADE
LIQUIDATION
MANAGEMENT INFORMATION SYSTEMS
MATURITY
NOMINAL INTEREST RATES
PER CAPITA INCOME
POLICY MAKERS
PRIVATE BANKS
PRIVATIZATION
PRODUCTION COSTS
PRODUCTION TECHNOLOGY
PROFITABILITY
PRUDENTIAL REGULATIONS
PUBLIC FINANCE
PUBLIC POLICY
REGULATORY FRAMEWORK
REORGANIZATION
RETURN ON ASSETS
RETURN ON EQUITY
SAVINGS
SAVINGS ACCOUNTS
STATE BANKING
STATE BANKS
STATE ENTERPRISES
STATISTICAL DATA
SUSTAINABLE DEVELOPMENT
TRANSACTION COSTS
TRANSITION ECONOMIES
WAGES
WATER PRICING
Online Access:http://documents.worldbank.org/curated/en/2001/04/1089534/financial-markets-credit-constraints-investment-rural-romania
http://hdl.handle.net/10986/13893
Description
Summary:The report assesses the performance of financial markets in rural areas of Romania, based on three - rural household, rural enterprise, and financial intermediary - surveys, carried out in 1998, and other official data covering 1997. The study finds that rural financial markets perform rather poorly in three key dimensions: the degree of access to financial services by rural economic agents (enterprises and households) is very limited; this limited access hinders the ability of these agents to take advantage of the investment opportunities available in rural areas; and, these markets failed to allocate flows of credit to those agents with the most profitable investment opportunities. This poor performance is caused by an unfortunate combination of short term circumstances, structural factors, and government policies, and interventions. In particular, the degree of access to credit services by rural agents is very low, because several factors have combined, to weaken both the supply of, and demand for rural credit. The report suggests a detailed government strategy to correct the observed shortcomings of rural financial markets, and identifies new challenges likely to appear. Moreover, the Government could assist in increasing the availability of credit, by improving policies in financial markets, legal and regulatory framework, and, the ability of the financial sector to provide retail financial services.

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