IMF Working Papers

Foreign Banks in the CESE Countries: In for a Penny, in for a Pound?

By Li L Ong, Andrea M. Maechler

March 1, 2009

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Li L Ong, and Andrea M. Maechler Foreign Banks in the CESE Countries: In for a Penny, in for a Pound?, (USA: International Monetary Fund, 2009) accessed December 26, 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

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

Publication Details

  • Pages:

    64

  • Volume:

    ---

  • DOI:

    ---

  • Issue:

    ---

  • Series:

    Working Paper No. 2009/054

  • Stock No:

    WPIEA2009054

  • ISBN:

    9781451872026

  • ISSN:

    1018-5941

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