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Foreign Banks and Credit Stability in Central and Eastern Europe: A Panel Data Analysis Author info | Abstract | Publisher info | Download info | Related research | Statistics Ralph de Haas
Iman van Lelyveld
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We study whether foreign and domestic banks in Central and Eastern Europe react differently to business cycle conditions and host country banking crises. Our unique panel dataset comprises data of more than 250 banks for the period 1993-2000, with detailed information on bank ownership and mode of entry. We show that during crisis periods (former) domestic banks contracted their credit base, whereas greenfield foreign banks did not. Also, home country conditions matter for foreign bank growth, as there is a significant negative relationship between home country economic growth and host country credit by greenfields. Finally, foreign bank subsidiary’s credit growth is influenced by the health of the parent bank.
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Paper provided by Netherlands Central Bank in its series DNB Staff Reports (discontinued) with number
109.
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Length: 23 pages
Date of creation: 2003Date of revision:
Handle: RePEc:dnb:staffs:109Contact details of provider: Postal: Postbus 98, 1000 AB Amsterdam Web page: http://www.dnb.nl/dnb/home?lang=en More information through EDIRC
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Keywords: foreign banks transition economies credit growth financial stability Other versions of this item:
Find related papers by JEL classification: C23 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Models with Panel Data F36 - International Economics - - International Finance - - - Financial Aspects of Economic Integration G21 - Financial Economics - - Financial Institutions and Services - - - Banks; Other Depository Institutions; Mortgages P34 - Economic Systems - - Socialist Institutions and Their Transitions - - - Finance
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references Cited by : (explanations , 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.)
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"How banks go abroad : branches or subsidiaries ? ,"
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Other versions: Ralph de Haas & Ilko Naaborg, 2005.
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