Bahadır, BerrakValev, N.2015-10-262015-10-262015-070378-4266http://hdl.handle.net/10679/961https://doi.org/10.1016/j.jbankfin.2015.03.001We show that credit levels relative to GDP and other measures for financial development tend to converge across countries over time. The results are obtained using a broad sample of countries over many years and controlling for the quality of country-level institutions, the efficiency of financial institutions, and a range of macroeconomic variables. While we find evidence for convergence in the broad sample, we show that it levels off when countries reach a medium level of financial development. At high levels of financial development, convergence slows down even more and becomes negligible.enginfo:eu-repo/semantics/restrictedAccessArticle56617100035655020000610.1016/j.jbankfin.2015.03.001Financial developmentConvergenceInstitutions2-s2.0-84928231171