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

64 Pages Posted: 23 Mar 2009

See all articles by Li Ong

Li Ong

International Monetary Fund (IMF)

Andrea Michaela Maechler

International Monetary Fund (IMF)

Date Written: March 2009

Abstract

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.

Keywords: Working Papers

Suggested Citation

Ong, Li and Maechler, Andrea Michaela, Foreign Banks in the CESE Countries: In for a Penny, in for a Pound? (March 2009). IMF Working Paper No. 09/54, Available at SSRN: https://ssrn.com/abstract=1366183

Li Ong

International Monetary Fund (IMF) ( email )

700 19th Street NW
Washington, DC 20431
United States

Andrea Michaela Maechler

International Monetary Fund (IMF) ( email )

700 19th Street, N.W.
Washington, DC 20431
United States

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