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Banking Structure and Credit Growth in Central and Eastern European Countries

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Author Info

  • Burcu Aydin

Abstract

Recent developments have increased questions about vulnerabilities in Central and Eastern European Countries (CEE) that are experiencing credit booms. This paper analyzes the role of foreign-owned banks in these credit booms. The results show that the CEE countries depend on foreign banks, and these foreign banks depend on interbank funding. Lending by foreign banks seems driven by economic growth and interest rate margins. This lending appears independent of economic but not financial conditions in the foreign bank''s home country.

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Bibliographic Info

Paper provided by International Monetary Fund in its series IMF Working Papers with number 08/215.

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Length: 44
Date of creation: 01 Sep 2008
Date of revision:
Handle: RePEc:imf:imfwpa:08/215

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Keywords: Banking systems; Central and Eastern Europe; Credit expansion; International banks; Economic growth; Interest rates; Real effective exchange rates; banking; foreign banks; foreign ownership; foreign bank; bank ownership; net interest margin; banking sector; bank credit; banking crises; banking system; bank entry; banking assets; host country; banking sector assets; host-country; bank lending; bank profitability; macroeconomic indicators; bank interest margins; banker; banking structures; market structure; national bank; bank policy; bank interest; foreign investor; savings bank; return on equity; bank competition; bank research; transition economy; foreign participation; foreign investors; banking markets; bank of greece; banking regulations; loan loss provision; foreign acquisition; central banking; recapitalization; deposit insurance; bank spreads; foreign branches; return on assets; banking publications; foreign assets; foreign investment; bank soundness; banking structure; bank data; bank loans; banking sector stability; banking industry; interest expense; bank performance; bank ? size; banking crisis; host countries;

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References

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Citations

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Cited by:
  1. Deniz Igan & Marcelo Pinheiro, 2011. "Credit Growth and Bank Soundness," IMF Working Papers 11/278, International Monetary Fund.
  2. Stephan Danninger & Irina Tytell & Ravi Balakrishnan & Selim Elekdag, 2009. "The Transmission of Financial Stress From Advanced to Emerging Economies," IMF Working Papers 09/133, International Monetary Fund.
  3. Sophie Brana & Delphine Lahet, 2009. "La Présence De Banques Étrangères En Europe De L'Est : Quels Risques Financiers ?," Working Papers hal-00616580, HAL.
  4. Nikolay Nenovsky & Kiril Tochkov, 2013. "The Distribution Dynamics of Income in Central and Eastern Europe relative to the EU: A Nonparametric Analysis," William Davidson Institute Working Papers Series wp1063, William Davidson Institute at the University of Michigan.
  5. Delphine Lahet, 2009. "Les Banques Étrangères En Asie Du Sud-Est : Le Rôle Des Local Claims," Working Papers hal-00616577, HAL.
  6. Ravi Balakrishnan & Stephan Danninger & Selim Elekdag & Irina Tytell, 2011. "The Transmission of Financial Stress from Advanced to Emerging Economies," Emerging Markets Finance and Trade, M.E. Sharpe, Inc., vol. 47(0), pages 40-68, May.
  7. Albulescu, Claudiu Tiberiu, 2009. "Forecasting credit growth rate in Romania: from credit boom to credit crunch?," MPRA Paper 16740, University Library of Munich, Germany, revised 10 Aug 2009.
  8. Gedeon Shirley, 2010. "The Political Economy of Currency Boards: Case of Bosnia and Herzegovina," South East European Journal of Economics and Business, De Gruyter Open, vol. 5(2), pages 7-20, November.
  9. Vogel, Ursula & Winkler, Adalbert, 2010. "Foreign banks and financial stability in emerging markets: Evidence from the global financial crisis," Frankfurt School - Working Paper Series 149, Frankfurt School of Finance and Management.
  10. Martin Cihák & Wim Fonteyne, 2009. "Five Years After," IMF Working Papers 09/68, International Monetary Fund.
  11. Bednarik, Radek, 2008. "Analýza volatility devizových kurzů vybraných ekonomik
    [The Analysis of Volatility of Selected Countries' Exchange Rates]
    ," MPRA Paper 15046, University Library of Munich, Germany.
  12. Maria DIMITRIU & Razvan-Constantin CARACOTA & Ioana-Aurelia OPREA & Marian-Albert SCRIECIU, 2011. "Credit Risk Management in Terms of Basel III," REVISTA DE MANAGEMENT COMPARAT INTERNATIONAL/REVIEW OF INTERNATIONAL COMPARATIVE MANAGEMENT, Faculty of Management, Academy of Economic Studies, Bucharest, Romania, vol. 12(6), pages 296-303, December.

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