Bank Funding in Central, Eastern and South Eastern Europe Post Lehman: A “New Normal”?

Gregorio Impavido, Heinz Rudolph and Luigi Ruggerone

No 2013/148, IMF Working Papers from International Monetary Fund

Abstract: CESEE banks are reducing foreign funding sources in response to reduced external imbalances, reduced ability to tap international savings, banking group own strategies, initiatives by some regulators, and consistently with uncertainties surrounding the future of the banking union project. In the medium term, the global regulatory agenda and the high foreign presence and stock of FX loans exert opposite forces on rebalancing trends. In the long-term, any funding “new normal” will be determined by the future design of the EU financial architecture. In the meantime, limiting leverage, the use of FX loans and promoting aggregate saving through macro policies and capital market reforms will increase resilience against shocks going forward.

Keywords: WP; banking sector; financial market; vis-à-vis bank; exchange rate; real GDP; Global Regulatory Agenda; Eastern Europe; Bank Funding; Deleveraging; parent bank; BNP Paribas; market capitalization; banking group; CDS price; BIS bank; Crédit Agricole; banks vis-à-vis; DSK bank; bank capital; FX loan; Loans; Pension spending; Commercial banks; Insurance; Western Europe; Global; Europe; Asia and Pacific; Baltics (search for similar items in EconPapers)
Pages: 47
Date: 2013-06-19
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Citations: View citations in EconPapers (12)

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