Economics at your fingertips  

Bank Domestic Outstandings in Central-Eastern-European Countries between 2008 and 2018

Sándor Bozsik () and Vladimír Gazda ()
Additional contact information
Sándor Bozsik: University of Miskolc

Theory Methodology Practice (TMP), 2018, vol. 14, issue 02, 15-24

Abstract: The economic crisis that broke out in the most developed part of the world in 2008 seriously affected the Central-Eastern- European bank systems. This was no wonder, because these economies were closely linked to the developed countries. Firstly, the Central-Eastern-European banks were mostly owned by large Western-European banks, and the management of these subsidiaries became tougher due to the asset management problems of their mother banks. The current paper examines the deleveraging of bank systems of this area during the crisis and thereafter. A special northern-southern division can be observed among the Central-Eastern-European banking systems, where the border is unfortunately at the northern border of Hungary. During the crisis, the amount of bank outstandings was mostly determined by the economic growth, the starting state of loan-deposit ratio, as well as the uncertainty of sovereign Credit Defalut Spread. In the aftercrisis period the change in outstandings is especially dependent on the non-performing loan ratio and the change in loandeposit ratio. Hungary is an “off-line” country for all strong correlated variable pairs, so the decrease in domestic outstandings may have country-specific reasons in addition to the general theoretical variables.

Keywords: Deleverage; Central-European banking system; financial crisis (search for similar items in EconPapers)
JEL-codes: E51 G21 (search for similar items in EconPapers)
Date: 2018
References: View complete reference list from CitEc
Citations: Track citations by RSS feed

Downloads: (external link) (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link:

Access Statistics for this article

Theory Methodology Practice (TMP) is currently edited by Zoltan Bartha

More articles in Theory Methodology Practice (TMP) from Faculty of Economics, University of Miskolc Contact information at EDIRC.
Bibliographic data for series maintained by ().

Page updated 2020-06-05
Handle: RePEc:mic:tmpjrn:v:14:y:2018:i:02:p:15-24