Foreign Banks and Credit Stability in Central and Eastern Europe: A Panel Data Analysis
Ralph De Haas () and
DNB Staff Reports (discontinued) from Netherlands Central Bank
We study whether foreign and domestic banks in Central and Eastern Europe react differently to business cycle conditions and host country banking crises. Our unique panel dataset comprises data of more than 250 banks for the period 1993-2000, with detailed information on bank ownership and mode of entry. We show that during crisis periods (former) domestic banks contracted their credit base, whereas greenfield foreign banks did not. Also, home country conditions matter for foreign bank growth, as there is a significant negative relationship between home country economic growth and host country credit by greenfields. Finally, foreign bank subsidiary's credit growth is influenced by the health of the parent bank.
Keywords: foreign banks; transition economies; credit growth; financial stability (search for similar items in EconPapers)
JEL-codes: C23 F36 G21 P34 (search for similar items in EconPapers)
Pages: 23 pages
New Economics Papers: this item is included in nep-mfd and nep-tra
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (18) Track citations by RSS feed
Downloads: (external link)
Journal Article: Foreign banks and credit stability in Central and Eastern Europe. A panel data analysis (2006)
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
Persistent link: https://EconPapers.repec.org/RePEc:dnb:staffs:109
Access Statistics for this paper
More papers in DNB Staff Reports (discontinued) from Netherlands Central Bank Contact information at EDIRC.
Bibliographic data for series maintained by Richard Heuver ().