Prague Economic Papers 2021, 30(5):596-612 | DOI: 10.18267/j.pep.782

Foreign Banks in Central and Eastern Europe: The Good, the Bad and the Ugly

Mihai Niţoi ORCID...a, Dorina Clichici ORCID...a, Simona Moagăr-Poladian ORCID...a
a Institute for World Economy, Romanian Academy, Romania

Foreign banks have played a major role in Central and Eastern European economic landscape over the last decades. They have spurred banking intermediation and fuelled economic growth for years. However, the global financial crisis unveiled the other side of the coin. This article analyses foreign banks' lending behaviour in Central and Eastern Europe over the period from 2000 to 2016. It aims to investigate the nexus between bank loan growth, cross-border bank claims and the cycle period. Moreover, it captures the impact of the financial cycle on foreign banks' credit behaviour and highlights whether foreign bank ownership is influenced by host- and home-country effects. Our findings reveal the strong nexus between foreign banks' loan growth and cross-border bank claims. Also, we emphasize the pro-cyclicality of foreign banks' loan growth and cross-border bank claims. Furthermore, we see clear differences related to foreign banks' lending behaviour during normal and turbulent times, triggered by host- and home-country effects. These results raise policy challenges regarding the right bank ownership balance and the use of prudential regulation.

Klíčová slova: Foreign banks, loan growth, cross-border bank claims, financial crisis, Central and Eastern Europe
JEL classification: F21, F36, G21

Vloženo: 27. říjen 2020; Revidováno: 20. květen 2021; Přijato: 30. červen 2021; Zveřejněno online: 11. srpen 2021; Zveřejněno: 22. říjen 2021  Zobrazit citaci

ACS AIP APA ASA Harvard Chicago Chicago Notes IEEE ISO690 MLA NLM Turabian Vancouver
Niţoi, M., Clichici, D., & Moagăr-Poladian, S. (2021). Foreign Banks in Central and Eastern Europe: The Good, the Bad and the Ugly. Prague Economic Papers, 30(5), 596-612. doi: 10.18267/j.pep.782
Stáhnout citaci
  • BibTeX (.bib)
  • Bookends (.ris)
  • EasyBib (.ris)
  • EndNote (.enw)
  • EndNote 8 (.xml)
  • ISI WoS (.isi)
  • Medlars (.medlars)
  • Mendeley (.ris)
  • MODS (.xml)
  • Papers (.ris)
  • RefWorks (.txt)
  • RefManager (.ris)
  • RIS (.ris)
  • MS Word (.xml)
  • Zotero (.ris)
    • Zobrazit celý článek

    Reference

    1. Allen, F., Beck, Th., Carletti, E., et al. (2011). Cross-Border Banking in Europe: Implications for Financial Stability and Macroeconomic Policies. London: Centre for Economic Policy Research. ISBN 978-1-907142-36-9
    2. Allen, F., Jackowicz, K., Kowalewski, O., et al. (2017). Bank Lending, Crises, and Changing Ownership Structure in Central and Eastern European Countries. Journal of Corporate Finance, 42, 494-515, https://doi.org/10.1016/j.jcorpfin.2015.05.001 Přejít k původnímu zdroji...
    3. Arakelyan, M. (2018). Foreign Banks and Credit Dynamics in CESEE. International Monetary Fund. Washington, DC Working Paper No. 18/3, https://doi.org/10.5089/9781484336779.001 Přejít k původnímu zdroji...
    4. Avdjiev, S., McCauley, R., McGuire, P. (2012). Rapid Credit Growth and International Credit: Challenges for Asia. Bank for International Settlements. Basel. Working Papers No. 377.
    5. Bakker, B., Gulde, A.-M. (2010). The Credit Boom in the EU New Member States: Bad Luck or Bad Policies? International Monetary Fund. Washington, DC Working Paper No. 10/130, https://doi.org/10.5089/9781455201136.001 Přejít k původnímu zdroji...
    6. Becker, T., Dăianu, D., Darvas, Z., et al. (2010). Whither Growth in Central and Eastern Europe? Policy Lessons for an Integrated Europe. Brussels: Bruegel Blueprint Series, Volume 11. ISBN 978-9-078910-17-6.
    7. Berger, A. N. (2007). Obstacles to a Global Banking System: "Old Europe" versus "New Europe". Journal of Banking and Finance, 31(7), 1955-1973, https://doi.org/10.1016/j.jbankfin.2007.01.005 Přejít k původnímu zdroji...
    8. Berglöf, E., Korniyenko, Y., Plekhanov, A., et al. (2009). Understanding the Crisis in Emerging Europe. London: European Bank for Reconstruction and Development. Working Paper No. 109, https://doi.org/10.2139/ssrn.1536645 Přejít k původnímu zdroji...
    9. BIS (2017). BIS Statistical Bulletin, June 2017. Basel: Bank for International Settlements.
    10. BIS (2020). Statistics, Locational Banking Statistics [database]. Basel: Bank for International Settlements.
    11. Blundell, R., Bond, S. (1998). Initial Conditions and Moment Restrictions in Dynamic Panel Data Models. Journal of Econometrics, 87(1), 115-143, https://doi.org/10.1016/S0304-4076(98)00009-8 Přejít k původnímu zdroji...
    12. Bonin, J. P., Hasan, I., Wachtel, P. (2005). Bank Performance, Efficiency and Ownership in Transition Countries. Journal of Banking & Finance, 29(1), 31-53, https://doi.org/10.1016/j.jbankfin.2004.06.015 Přejít k původnímu zdroji...
    13. Bonin, J. P., Louie, D. (2017). Did Foreign Banks Stay Committed to Emerging Europe during Recent Financial Crises? Journal of Comparative Economics, 45(4), 793-808, https://doi.org/10.1016/j.jce.2016.08.003 Přejít k původnímu zdroji...
    14. Borio, C., McCauley, R., McGuire, P. (2011). Global Credit and Domestic Credit Booms. Bank for International Settlements. BIS Quarterly Review. Available at: https://www.bis.org/publ/qtrpdf/r_qt1109f.pdf
    15. Brunnermeier, M., De Gregorio, J., Eichengreen, B., et al. (2012). Banks and Cross-Border Capital Flows: Policy Challenges and Regulatory Responses. Brookings Institution, Committee for International Economic Policy and Reform. Available at: https://www.brookings.edu/wp-content/uploads/2016/06/09-ciepr-banking-capital-flows.pdf
    16. Bruno, V., Shin, H. S. (2012). Capital Flows, Cross-border Banking and Global Liquidity. AFA 2013. San Diego Meetings Paper, https://doi.org/10.2139/ssrn.2020556 Přejít k původnímu zdroji...
    17. Brzoza-Brzezina, M., Kolasa, M., Makarski, K. (2018). Crisis, Contagion and International Policy Spillovers under Foreign Ownership of Banks. Journal of Financial Stability, 36, 293-304, https://doi.org/10.1016/j.jfs.2018.03.006 Přejít k původnímu zdroji...
    18. Budnik, K. B., Kleibl, J. (2018). Macroprudential Regulation in the European Union in 1995-2014: Introducing a New Data Set on Policy Actions of a Macroprudential Nature. European Central Bank. Working Paper Series No. 2123. Přejít k původnímu zdroji...
    19. Cetorelli, N., Goldberg, L. S. (2011). Global Banks and International Shock Transmission: Evidence from the Crisis. IMF Economic Review, 59(1), 41-76, https://doi.org/10.1057/imfer.2010.9 Přejít k původnímu zdroji...
    20. Chen, G., Wu, Y. (2014). Bank Ownership and Credit Growth in Emerging Markets During and After the 2008-09 Financial Crisis - A Cross-Regional Comparison. International Monetary Fund. Working Paper No. 14/171, https://doi.org/10.5089/9781484390993.001 Přejít k původnímu zdroji...
    21. Claessens, S., Demirgüç-Kunt, A., Huizinga, H. (2001). How Does Foreign Entry Affect Domestic Banking Markets? Journal of Banking and Finance, 25(5), 891-911, http://doi.org/10.1016/S0378-4266(00)00102-3 Přejít k původnímu zdroji...
    22. Claessens, S., van Horen, N. (2015). The Impact of the Global Financial Crisis on Banking Globalization. IMF Economic Review, 63(4), 868-918, https://doi.org/10.1057/imfer.2015.38 Přejít k původnímu zdroji...
    23. Clarke, G. R., Cull, R., Martinez Peria, M. S. (2006). Foreign Bank Participation and Access to Credit across Firms in Developing Countries. Journal of Comparative Economics, 34(4), 774-795, https://doi.org/10.1016/j.jce.2006.08.001 Přejít k původnímu zdroji...
    24. Cull, R., Pería, M. S. (2013). Bank Ownership and Lending Patterns during the 2008-2009 Financial Crisis: Evidence from Latin America and Eastern Europe. Journal of Banking & Finance, 37(12), 4861-4878, https://doi.org/10.1016/j.jbankfin.2013.08.017 Přejít k původnímu zdroji...
    25. Cull, R., Pería, M. S., Verrier, J. (2017). Bank Ownership - Trends and Implications. International Monetary Fund. Washington, DC Working Paper No. 17/60. Přejít k původnímu zdroji...
    26. De Haas, R., Korniyenko, Y., Pivovarsky, A., et al. (2015). Taming the Herd? Foreign Banks, the Vienna Initiative and Crisis Transmission. Journal of Financial Intermediation, 24(3), 325-355, https://doi.org/10.1016/j.jfi.2014.05.003 Přejít k původnímu zdroji...
    27. De Haas, R., Van Lelyveld, I. (2006). Foreign Banks and Credit Stability in Central and Eastern Europe. A Panel Data Analysis. Journal of banking & Finance, 30(7), 1927-1952, https://doi.org/10.1016/j.jbankfin.2005.07.007 Přejít k původnímu zdroji...
    28. De Haas, R., Van Lelyveld, I. (2014). Multinational Banks and the Global Financial Crisis: Weathering the Perfect Storm? Journal of Money, Credit and Banking, 46(s1), 333-364, https://doi.org/10.1111/jmcb.12094 Přejít k původnímu zdroji...
    29. Drakos, A. A., Kouretas, G. P., Tsoumas, C. (2016). Ownership, Interest Rates and Bank Risk-taking in Central and Eastern European Countries. International Review of Financial Analysis, 45, 308-319, https://doi.org/10.1016/j.irfa.2014.08.004 Přejít k původnímu zdroji...
    30. Duca, L. M., Koban, A., Basten, M., et al. (2017). A New Database for Financial Crises in European Countries: ECB/ESRB EU Crises Database. European Central Bank. Frankfurt am Main Occasional Paper No. 194. Přejít k původnímu zdroji...
    31. European Central Bank (2020). Statistical Data Warehouse, Supervisory and Prudential Statistics [database]. Frankfurt am Main: European Central Bank.
    32. Fišerová, T., Teplý, P., Tripe, D. (2015). The Performance of Foreign-Owned Banks in Host Country Economies. Prague Economic Papers, 24(5), 538-561, https://doi.org/10.18267/j.pep.527 Přejít k původnímu zdroji...
    33. Hasan, I., Marton, K. (2003). Development and Efficiency of the Banking Sector in a Transitional Economy: Hungarian Experience. Journal of Banking & Finance, 27(12), 2249-2271, https://doi.org/10.1016/S0378-4266(02)00328-X Přejít k původnímu zdroji...
    34. Haselmann, R. (2006). Strategies of Foreign Banks in Transition Economies. Emerging Markets Review, 7(4), 283-299, https://doi.org/10.1016/j.ememar.2006.09.002 Přejít k původnímu zdroji...
    35. Haselmann, R., Wachtel, P., Sobott, J. (2016). Credit Institutions, Ownership and Bank Lending in Transition Economies, in Beck, T., Casu, B., eds. The Palgrave Handbook of European Banking. London: Palgrave Macmillan, pp. 623-643, https://doi.org/10.1057/978- 1-137-52144-6_24 Přejít k původnímu zdroji...
    36. Havrylchyk, O., Jurzyk, E. (2011). Inherited or Earned? Performance of Foreign Banks in Central and Eastern Europe. Journal of Banking and Finance, 35(5), 1291-1302, https://doi.org/10.1016/j.jbankfin.2010.10.007 Přejít k původnímu zdroji...
    37. Impavido, G., Rudolph, H., Ruggerone, L. (2013). Bank Funding in Central, Eastern and South Eastern Europe Post Lehman - a "New Normal"? International Monetary Fund. Washington, DC Working Paper No. 13/148, https://doi.org/10.5089/9781484391082.001 Přejít k původnímu zdroji...
    38. Iwanicz-Drozdowska, M., Witkowski, B. (2016). Credit Growth in Central, Eastern, and South-Eastern Europe: The Case of Foreign Bank Subsidiaries. International Review of Financial Analysis, 43, 146-158, https://doi.org/10.1016/j.irfa.2015.11.010 Přejít k původnímu zdroji...
    39. Klingen, C. (2013). Perspectives on Growth Prospects for Central, Eastern and Southeastern Europe, in Kolev, A., Zwart, S., eds., Banking in Central and Eastern Europe and Turkey - Challenges and Opportunities. Luxembourg: European Investment Bank, pp. 13-25.
    40. Lapteacru, I. (2016). Bank Risk in Central and Eastern European Countries: Does Ownership Matter? Monetary Economics: Financial System & Institutions eJournal, http://doi.org/10.2139/ssrn.2801977 Přejít k původnímu zdroji...
    41. Montoro, C., Rojas-Suarez, L. (2012). Credit at Times of Stress: Latin American Lessons from the Global Financial Crisis. Bank for International Settlements. Basel Working Paper No. 370. Přejít k původnímu zdroji...
    42. Niţoi, M., Clichici, D., Moagăr-Poladian, S. (2019). The Effects of Prudential Policies on Bank Leverage and Insolvency Risk in Central and Eastern Europe. Economic Modelling, 81, 148-160, https://doi.org/10.1016/j.econmod.2018.12.016 Přejít k původnímu zdroji...
    43. Perić, B. Š., Smiljanić, A. R., Aljinović Z. (2018). Credit Risk of Subsidiaries of Foreign Banks in CEE Countries: Impacts of the Parent Bank and Home Country Economic Environment. The North American Journal of Economics and Finance, 46, 49-69, https://doi.org/10.1016/j.najef.2018.03.009 Přejít k původnímu zdroji...
    44. Pochea, M. M., Nițoi, M. (2021). The Impact of Prudential Toolkits on Loan Growth in Central and Eastern European Banking Systems. Economic Systems, 45(1), 100767, https://doi.org/10.1016/j.ecosys.2020.100767 Přejít k původnímu zdroji...
    45. Roodman, D. (2009). How To Do Xtabond2: An Introduction to Difference and System GMM in Stata. The Stata Journal, 9(1), 86-136, https://doi.org/10.1177/1536867X0900900106 Přejít k původnímu zdroji...
    46. Temesvary, J., Banai, A. (2017). The Drivers of Foreign Bank Lending in Central and Eastern Europe: The Roles of Parent, Subsidiary and Host Market Traits. Journal of International Money and Finance, 79, 157-173, https://doi.org/10.1016/j.jimonfin.2017.08.005 Přejít k původnímu zdroji...

    Tento článek je publikován v režimu tzv. otevřeného přístupu k vědeckým informacím (Open Access), který je distribuován pod licencí Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 International License (CC BY NC ND 4.0), která umožňuje nekomerční distribuci, reprodukci a změny, pokud je původní dílo řádně ocitováno. Není povolena distribuce, reprodukce nebo změna, která není v souladu s podmínkami této licence.


    Zpět na obsah