Banking Structure and Credit Growth in Central and Eastern European Countries

Author/Editor:

Burcu Aydin

Publication Date:

September 1, 2008

Electronic Access:

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Disclaimer: This Working Paper should not be reported as representing the views of the IMF.The views expressed in this Working Paper are those of the author(s) and do not necessarily represent those of the IMF or IMF policy. Working Papers describe research in progress by the author(s) and are published to elicit comments and to further debate

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.

Series:

Working Paper No. 08/215

Subject:

English

Publication Date:

September 1, 2008

ISBN/ISSN:

9781451870732/1018-5941

Stock No:

WPIEA2008215

Format:

Paper

Pages:

44

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