Gregory Udell discusses the credit crunch in Eastern Europe with Brenda Bailey-Hughes. Udell is the Chase Chair of Banking and Finance, and Bailey-Hughes is Senior Lecturer of Business Communication, both at the Kelley School of Business. Udell's research found that there is a credit crunch--a contraction of the supply of credit--in Eastern Europe. He also discusses how this credit crunch was transmitted: a largely foreign-owned banking system shared toxic assets from the subprime mortgage crisis in the United States and Western Europe, and the crunch spread to Eastern Europe. Udell concludes that small and midsize businesses--especially firms that are opaque--have been hurt the most. Udell criticizes the U.S. for not keeping proper data on lending to small businesses, which is why his research centers on Eastern Europe. He believes the results can be applicable to the credit situation for small businesses in the U.S. *This video was recorded as a part of the Indiana University CIBER Focus Vodcast series.
