{"id":{"repo_id":"uiuc","oai_identifier":"oai:www.ideals.illinois.edu:2142/85576"},"canonical_url":"https://search.dev.ndltd.org/etd/uiuc/oai:www.ideals.illinois.edu:2142/85576","repository":{"repo_id":"uiuc","name":"University of Illinois - Urbana-Champaign","base_url":"https://www.ideals.illinois.edu/oai-pmh"},"display":{"title":"Banking in Transition Countries","abstract":"Finally, I examine the interaction between borrowing costs and firms' decisions to secure loans. I demonstrate that decisions of firms in transition economies to secure loans are consistent with the decisions of firms in more advanced economies and that presence of collateral is associated with riskier loans. At the firm level, I find that firms' decision to pledge collateral is primarily determined by the interest rate differential, but at the country level, the efficiency of contract enforcement matters the most.","abstract_html":"Finally, I examine the interaction between borrowing costs and firms&#x27; decisions to secure loans. I demonstrate that decisions of firms in transition economies to secure loans are consistent with the decisions of firms in more advanced economies and that presence of collateral is associated with riskier loans. 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