Development and Finance from issue 2009/2

Tamás Isépy

Financial Structure and Volatility

- Abstract -

JEL G-15, O-40

In countries with a bank-based financial structure, lending and other banking transactions primarily depend on the relationship between the bank and the customer (relationship-lending), whereas lending in countries with a market-based financial structure is basically determined by market fluctuations. Due to different development paths of the financial system, not only the character of lending is different but also the composition of the banking system, because in countries with a bank-based financial structure the proportion of savings banks and cooperative banks is higher. The main question is what is the relationship between the credit market and the business cycle? If there is such a relationship, then is there any difference in the correlation between the bank-based and the market-based countries? What is the link between the credit market and the growth rate in the individual phases of business cycles?

Tamás Isépy, PhD student (Doctoral School of Economical and Organisational Sciences, Budapest University of Technology and Economics)

The purchase/download section of full articles is still under development. If you want to read full articles, please contact the editorial office of Fejlesztés és Finanszírozás/Development and Finance by sending an e-mail to Thank you for your understanding.