Banking Structure and Credit Growth in Central and Eastern European Countries
September 1, 2008
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Summary
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.
Subject: Bank credit, Banking, Credit, Foreign banks, State-owned banks
Keywords: CEE country, CEE subsidiary, credit growth, parent bank, WP
Pages:
44
Volume:
2008
DOI:
Issue:
215
Series:
Working Paper No. 2008/215
Stock No:
WPIEA2008215
ISBN:
9781451870732
ISSN:
1018-5941
