Coping in the Subprime Region

Daniela Gabor

Chapter 6 in Central Banking and Financialization, 2011, pp 186-215 from Palgrave Macmillan

Abstract: Abstract Up to February 2009, the global deleveraging pressures appeared to have affected European banks only relative to the degree of the exposure of their investment banking arms to the convulsions of Anglo Saxon financial markets. But during February 2009 the threats of a homegrown crisis were increasingly visible, at its roots the European commercial banks’ strategies of internationalization in CEE. Western European banks had entered banking systems in the region through privatization processes, keen to exploit markets with confident consumers, pent-up demand, and booming activity. As parent banks channelled foreign-currency loans through their subsidiaries, cross-border exposures increased to around €600 billion (The Economist 2009). Concerns revolved around the maturity mismatches between short-term borrowing in international money markets and long-term lending in Eastern European consumer and housing markets. From growth tigers, the region suddenly became subprime.

Keywords: Central Bank; Commercial Bank; Banking Sector; Public Debt; Money Market (search for similar items in EconPapers)
Date: 2011
References: Add references at CitEc
Citations:

There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it.

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: https://EconPapers.repec.org/RePEc:pal:stuchp:978-0-230-29504-9_6

Ordering information: This item can be ordered from
http://www.palgrave.com/9780230295049

DOI: 10.1057/9780230295049_6

Access Statistics for this chapter

More chapters in Studies in Economic Transition from Palgrave Macmillan
Bibliographic data for series maintained by Sonal Shukla () and Springer Nature Abstracting and Indexing ().