Banking sector development and financial stability in the run up to EU accession
AbstractThe EU accession countries have made remarkable progress in developing their financial sectors. Nevertheless, potential risks to banking sector stability remain. We take stock of these risks, with a focus on the challenges posed by the EU accession process. Important potential risks we identify are consistently large current account deficits possibly combined with more volatile short-term financing in the future, imprudent financing of lending booms, increasing currency mismatches in the banking and corporate sector, substantial exchange rate volatility, and lagging legislation and supervision. Risks can be limited by taking advantage of the presence of foreign banks, keeping current account deficits within limits, taking financial stability considerations into account in determining exchange rate policies, guaranteeing the independence of the central bank and supervisory authorities, and strengthening the rule of law.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoPaper provided by Netherlands Central Bank, Monetary and Economic Policy Department in its series MEB Series (discontinued) with number 2002-6.
Date of creation: Jun 2002
Date of revision:
EU accession; financial stability; banking system;
Find related papers by JEL classification:
- E44 - Macroeconomics and Monetary Economics - - Money and Interest Rates - - - Financial Markets and the Macroeconomy
- E61 - Macroeconomics and Monetary Economics - - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook - - - Policy Objectives; Policy Designs and Consistency; Policy Coordination
- F32 - International Economics - - International Finance - - - Current Account Adjustment; Short-term Capital Movements
- F36 - International Economics - - International Finance - - - Financial Aspects of Economic Integration
- G28 - Financial Economics - - Financial Institutions and Services - - - Government Policy and Regulation
This paper has been announced in the following NEP Reports:
- NEP-ALL-2003-08-17 (All new papers)
- NEP-CBA-2003-08-17 (Central Banking)
- NEP-EEC-2003-08-17 (European Economics)
- NEP-FIN-2003-08-17 (Finance)
- NEP-IFN-2003-08-17 (International Finance)
- NEP-MFD-2003-08-17 (Microfinance)
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Katharina Pistor & Martin Raiser & Stanislaw Gelfer, 2000. "Law and Finance in Transition Economies," CID Working Papers 49, Center for International Development at Harvard University.
- McKinnon, Ronald I & Pill, Huw, 1997. "Credible Economic Liberalizations and Overborrowing," American Economic Review, American Economic Association, vol. 87(2), pages 189-93, May.
- Rafael La Porta & Florencio López-de-Silanes & Guillermo Zamarripa, 2003.
The Quarterly Journal of Economics,
MIT Press, vol. 118(1), pages 231-268, February.
- Rafael Porta & Florencio de & Guillermo Zamarripa, 2002. "Related Lending," Yale School of Management Working Papers ysm268, Yale School of Management, revised 01 Apr 2006.
- Rafael La Porta & Florencio Lopez-de-Silane & Guillermo Zamarripa, 2002. "Related Lending," NBER Working Papers 8848, National Bureau of Economic Research, Inc.
- Boyd, John H. & Levine, Ross & Smith, Bruce D., 2001. "The impact of inflation on financial sector performance," Journal of Monetary Economics, Elsevier, vol. 47(2), pages 221-248, April.
- Asli DemirgÃ¼Ã§-Kunt & Enrica Detragiache, 2000. "Does Deposit Insurance Increase Banking System Stability?," IMF Working Papers 00/3, International Monetary Fund.
- Claessens, Stijn & Demirguc-Kunt, Asl[iota] & Huizinga, Harry, 2001. "How does foreign entry affect domestic banking markets?," Journal of Banking & Finance, Elsevier, vol. 25(5), pages 891-911, May.
- Rafael LaPorta & Florencio Lopez-de-Silanes & Andrei Shleifer & Robert W. Vishny, .
"Legal Determinants of External Finance,"
19443, Harvard University OpenScholar.
- Rafael LaPorta & Florencio Lopez de-Silanes & Andrei Shleifer & Robert W. Vishny, 1997. "Legal Determinants of External Finance," Harvard Institute of Economic Research Working Papers 1788, Harvard - Institute of Economic Research.
- Rafael La Porta & Florencio Lopez-de-Silane & Andrei Shleifer & Robert W. Vishny, 1997. "Legal Determinants of External Finance," NBER Working Papers 5879, National Bureau of Economic Research, Inc.
- RAFAEL LaPORTA & FLORENCIO LOPEZ-de-SILANES & ANDREI SHLEIFER & ROBERT W. VISHNY, . "Legal Determinants of External Finance,"," CRSP working papers 324, Center for Research in Security Prices, Graduate School of Business, University of Chicago.
- Joe Peek & Eric S. Rosengren, 2000.
"Implications of the globalization of the banking sector: the Latin American experience,"
New England Economic Review,
Federal Reserve Bank of Boston, issue Sep, pages 45-62.
- Joe Peek & Eric S. Rosengren, 2000. "Implications of the globalization of the banking sector: the Latin American experience," Conference Series ; [Proceedings], Federal Reserve Bank of Boston, vol. 44(Jun), pages 145-185.
- Hersch, Philip & Kemme, David & Netter, Jeffry, 1997. "Access to Bank Loans in a Transition Economy: The Case of Hungary," Journal of Comparative Economics, Elsevier, vol. 24(1), pages 79-89, February.
- Nada Mora & Ratna Sahay & Jeromin Zettelmeyer & Pietro Garibaldi, 2002.
"What Moves Capital to Transition Economies?,"
IMF Working Papers
02/64, International Monetary Fund.
- Sutela, Pekka, 2001. "Managing capital flows in Estonia and Latvia," BOFIT Discussion Papers 17/2001, Bank of Finland, Institute for Economies in Transition.
- Katharina Pistor & Martin Raiser & Stanislaw Gelfer, 2000. "Law and Finance in Transition Economies," The Economics of Transition, The European Bank for Reconstruction and Development, vol. 8(2), pages 325-368, July.
- R.T.A. de Haas & I. van Lelyveld, 2002. "Foreign Bank Penetration and Bank Credit Stability in Central and Eastern Europe," Research Series Supervision (discontinued) 43, Netherlands Central Bank, Directorate Supervision.
- Bilin Neyaptý & Nergiz Dincer, 2000. "Measuring the Quality of Bank Regulation and Supervision and its Macroeconomic Effects," Departmental Working Papers 0011, Bilkent University, Department of Economics.
- Michael Taylor & Marc Quintyn, 2002. "Regulatory and Supervisory Independence and Financial Stability," IMF Working Papers 02/46, International Monetary Fund.
- J.G. Rotte & M.P.H. de Vor, 2001. "Report on Financial Management," Research Series Supervision (discontinued) 36, Netherlands Central Bank, Directorate Supervision.
- Schardax, Franz & Reininger, Thomas & Summer, Martin, 2001. "The Financial System in the Czech Republic, Hungary and Poland after a Decade of Transition," Discussion Paper Series 1: Economic Studies 2001,16, Deutsche Bundesbank, Research Centre.
- Steinherr, Alfred & Tukel, Ali & Ucer, Murat, 2004. "The Turkish Banking Sector - Challenges And Outlook In Transition To Eu Membership," Economic and Financial Reports 2004/2, European Investment Bank, Economics Department.
- Supreena Narayanan & Rashmi Dalvi, 2004. "Assessment of Financial Stability Reports:Sveriges Riksbank," Finance 0411040, EconWPA.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Rob Vet).
If references are entirely missing, you can add them using this form.