IMF Working Papers

Banking Structure and Credit Growth in Central and Eastern European Countries

By Burcu Aydin

September 1, 2008

Download PDF

Preview Citation

Format: Chicago

Burcu Aydin. Banking Structure and Credit Growth in Central and Eastern European Countries, (USA: International Monetary Fund, 2008) 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

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

Publication Details

  • Pages:

    44

  • Volume:

    ---

  • DOI:

    ---

  • Issue:

    ---

  • Series:

    Working Paper No. 2008/215

  • Stock No:

    WPIEA2008215

  • ISBN:

    9781451870732

  • ISSN:

    1018-5941