IDEAS home Printed from https://ideas.repec.org/a/onb/oenbfs/y2009i17b4.html
   My bibliography  Save this article

Direct Cross-Border Lending by Austrian Banks to Eastern Europe

Author

Listed:

Abstract

Direct cross-border lending is an important component in the ongoing process of financial deepening in Central, Eastern and Southeastern Europe (CESEE) and the Commonwealth of Independent States (CIS). We use a loan-level dataset of Austrian banks to study the characteristics as well as the major driving forces of direct cross-border lending in CESEE and the CIS. Direct cross-border lending to nonbanks by Austrian banks expanded rapidly over the last few years; the bulk of loans is extended to corporate customers and is denominated in a foreign currency, with the euro taking a prominent position. By means of a series of univariate analyses, we provide support for the relevance of geographic proximity – small and medium-sized banks mainly lend to neighboring countries. Banks’ direct lending also seems to follow nonfinancial FDI by Austrian corporates to CESEE and the CIS. We furthermore analyze the interdependencies between direct (i.e. by Austrian headquarters) and indirect (i.e. by local subsidiaries) cross-border lending and find support for a complementary effect between the two. In addition, host country factors such as GDP growth, private sector credit growth, financial intermediation growth and wage growth are also associated with direct lending growth.

Suggested Citation

  • Claus Puhr & Markus Schwaiger & Michael Sigmund, 2009. "Direct Cross-Border Lending by Austrian Banks to Eastern Europe," Financial Stability Report, Oesterreichische Nationalbank (Austrian Central Bank), issue 17, pages 102-122.
    • Handle: RePEc:onb:oenbfs:y:2009:i:17:b:4
    as

    Download full text from publisher

    File URL: https://www.oenb.at/dam/jcr:4c44f728-7b58-48e0-aedc-b4ffb88399ed/fsr_17_special_topics04_tcm16-140534.pdf
    Download Restriction: no
    ---><---

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Stephan Barisitz & Mathias Lahnsteiner, 2010. "Russian Banks on the Route of Fragile Recovery," Financial Stability Report, Oesterreichische Nationalbank (Austrian Central Bank), issue 20, pages 77-85.
    2. Glocker, Christian & Url, Thomas, 2022. "Financial sector rescue programs: Domestic and cross border effects," Journal of International Money and Finance, Elsevier, vol. 127(C).
    3. Raphael Auer & Sebastien Kraenzlin, 2011. "International liquidity provision during the financial crisis: a view from Switzerland," Review, Federal Reserve Bank of St. Louis, vol. 93(Nov), pages 409-418.
    4. Markus Hameter & Mathias Lahnsteiner & Ursula Vogel, 2012. "Intra-Group Cross-Border Credit and Roll-Over Risks in CESEE – Evidence from Austrian Banks," Financial Stability Report, Oesterreichische Nationalbank (Austrian Central Bank), issue 23, pages 72-87.
    5. Mariarosaria Comunale & Markus Eller & Mathias Lahnsteiner, 2020. "Assessing Credit Gaps in CESEE Based on Levels Justified by Fundamentals – A Comparison Across Different Estimation Approaches (Mariarosaria Comunale, Markus Eller, Mathias Lahnsteiner)," Working Papers 229, Oesterreichische Nationalbank (Austrian Central Bank).

    More about this item

    Keywords

    direct lending; cross-border lending; credit growth; Central; Eastern and Southeastern Europe;
    All these keywords.

    JEL classification:

    • G21 - Financial Economics - - Financial Institutions and Services - - - Banks; Other Depository Institutions; Micro Finance Institutions; Mortgages
    • F37 - International Economics - - International Finance - - - International Finance Forecasting and Simulation: Models and Applications

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:onb:oenbfs:y:2009:i:17:b:4. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Stefan W. Schmitz (email available below). General contact details of provider: https://edirc.repec.org/data/oenbbat.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.