Foreign Banks in the CESE Countries: In for a Penny, in for a Pound?
March 1, 2009
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Summary
The aim of this paper is to construct a comprehensive and consistent dataset to analyze the potential risks from foreign bank lending, for both the creditor and borrower countries of Central, Eastern and South-Eastern Europe (CESE). We develop a picture of bank claims on 13 CESE countries by combining credit statistics from several sources. Our constructed data suggest that some of these host countries have become more at risk from a sudden withdrawal of short-term external funding, while home countries have significant aggregate exposures to the region. Overall, we find that data on banking activity remain largely inadequate for surveillance and policymaking purposes, and that a concerted effort to improve data collection is needed at the international level.
Subject: Banking, Commercial banks, Currencies, Financial institutions, Foreign banks, Foreign currency exposure, Money, Nonbank financial institutions
Keywords: and South-Eastern Europe, Baltics, bank, bank claim, bank funding, Central, CESE country, Commercial banks, Contagion, cross-border claims, Currencies, Eastern, Foreign banks, foreign currency, Foreign currency exposure, Global, home, host, local affiliates of foreign banks, Nonbank financial institutions, nonbank private sector, private sector, risk management strategy, WP
Pages:
64
Volume:
2009
DOI:
Issue:
054
Series:
Working Paper No. 2009/054
Stock No:
WPIEA2009054
ISBN:
9781451872026
ISSN:
1018-5941
