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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: 43
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;

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References

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Citations

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Cited by:
  1. Martin Cihák & Wim Fonteyne, 2009. "Five Years After: European Union Membership and Macro-Financial Stability in the New Member States," IMF Working Papers 09/68, International Monetary Fund.
  2. 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.
  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. 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.
  5. Delphine Lahet, 2009. "Les Banques Étrangères En Asie Du Sud-Est : Le Rôle Des Local Claims," Working Papers hal-00616577, HAL.
  6. 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.
  7. 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.

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