Bank Funding in Central, Eastern and South Eastern Europe Post Lehman: A “New Normal”?

By Gregorio Impavido, Heinz Rudolph, Luigi Ruggerone

June 19, 2013

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Gregorio Impavido, Heinz Rudolph, and Luigi Ruggerone. Bank Funding in Central, Eastern and South Eastern Europe Post Lehman: A “New Normal”?, (USA: International Monetary Fund, 2013) accessed November 21, 2024

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

CESEE banks are reducing foreign funding sources in response to reduced external imbalances, reduced ability to tap international savings, banking group own strategies, initiatives by some regulators, and consistently with uncertainties surrounding the future of the banking union project. In the medium term, the global regulatory agenda and the high foreign presence and stock of FX loans exert opposite forces on rebalancing trends. In the long-term, any funding “new normal” will be determined by the future design of the EU financial architecture. In the meantime, limiting leverage, the use of FX loans and promoting aggregate saving through macro policies and capital market reforms will increase resilience against shocks going forward.

Subject: Banking, Commercial banks, Expenditure, Financial institutions, Foreign exchange, Insurance, Loans, Pension spending

Keywords: Asia and Pacific, Baltics, Bank capital, Bank Funding, Banking group, Banking sector, Banks vis-à-vis, BIS bank, BNP Paribas, CDS price, Commercial banks, Crédit Agricole, Deleveraging, DSK bank, Eastern Europe, Europe, Exchange rate, Financial market, FX loan, Global, Global Regulatory Agenda, Insurance, Loans, Market capitalization, Parent bank, Pension spending, Real GDP, Vis-à-vis bank, Western Europe, WP

Publication Details

Pages:

47
Volume:

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DOI:

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Issue:

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Series:

Working Paper No. 2013/148
Stock No:

WPIEA2013148
ISBN:

9781484391082
ISSN:

1018-5941

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