Credit growth in emerging Europe: a cause for stability concerns?

Sophie Sirtaine and Ilias Skamnelos

No 4281, Policy Research Working Paper Series from The World Bank

Abstract: High credit growth in Emerging Europe, generally considered a sign of catching-up with the"old"Europe, has begun receiving considerable attention among investors and policymakers alike. Given heightened global risks and the demands under the European Union accession process, the need to better understand this high credit growth's drivers, riskiness, and the possible macroeconomic and financial stability consequences is strong. The authors adopt a holistic approach in reviewing the rapid credit growth experienced in the region, examining macroeconomic, financial sector, corporate sector, and asset market consequences and possible vulnerabilities. They consider three possible scenarios-a catching-up with older European countries, a soft landing as experienced by Portugal in the early 2000s, and a hard landing as experienced by Asia in 1997.

Keywords: Banks&Banking Reform; Financial Intermediation; Financial Crisis Management&Restructuring; Economic Theory&Research; Investment and Investment Climate (search for similar items in EconPapers)
Date: 2007-07-01
New Economics Papers: this item is included in nep-ban, nep-eec, nep-sea and nep-tra
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (25)

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