Assessment of changes in banking sector's cretiting activity in context of changes in the economic cycle: the case of Baltic countries

Banking sector is one of the most important sectors of economy, which ensures, that money swap and circulation are carried out continuously. The growing importance of emerging markets in global economy are motivating to take interest in those markets and their banking sectors, so in this article, changes of crediting activity of banking sectors of Baltic countries, in context of changes in the economic cycle, are analysed. The main objective of this article – after assessment of cyclicality of the economies and relation between economy and banking, the purpose is to examine crediting activity changes in banking sectors of Baltic countries in context of changes in the economic cycle. The results of the research showed, that fluctuation of economic cycles of Baltic countries, in research period, are similar. It was also found, that changes of value and structure of loan portfolios of banking sectors of Baltic countries, in the assessment of the economic cycle phase change, between countries, significantly differed. Results of regression and correlation analysis showed, that economic cycle changes for crediting activity changes in banking sectors of Baltic countries, was mostly related to changes in GDPEkonomikos ir vadybos fakultetasVytauto Didžiojo universiteta