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The Refinancing Structure of Banks in Selected CESEE Countries

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  • Mathias Lahnsteiner

    (Oesterreichische Nationalbank, Foreign Research Division)

Abstract

In this paper, we present systematic regional and cross-country information about the refinancing structure of the banking sector in selected Central, Eastern and Southeastern European (CESEE) countries. We use the most recent data available (from mid-2008 until end-2009) to focus on the situation of CESEE banking sectors following the intensification of the financial crisis triggered by the collapse of Lehman Brothers. At that time, there were fears of spillover effects, given the strong reliance of most of these countries’ banking sectors on foreign funding. Our analysis shows that in the second half of 2008, most CESEE banking sectors received additional funds from abroad, while in the course of 2009, net capital flows to banks turned at least temporarily negative in all countries under review except Poland. However, the size of net outflows on the liability side of banks’ balance sheets differed substantially across countries. Looking at the whole period from mid-2008 to end-2009, our findings suggest that outflows affected above all banking sectors that had very high net foreign liabilities at the onset of the crisis (i.e. in the Baltic countries, particularly Latvia and Estonia) and banking sectors with comparatively low levels of foreign ownership (Slovenia, Ukraine and Russia).

Suggested Citation

  • Mathias Lahnsteiner, 2011. "The Refinancing Structure of Banks in Selected CESEE Countries," Focus on European Economic Integration, Oesterreichische Nationalbank (Austrian Central Bank), issue 1, pages 44-69.
    • Handle: RePEc:onb:oenbfi:y:2011:i:1:b:3
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    File URL: https://www.oenb.at/dam/jcr:33dc0307-5c8f-4956-88ed-a39d4f397cc8/feei_2011_q1_studies_03_tcm16-224905.pdf
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    References listed on IDEAS

    as
    1. Sonsoles Gallego & Sándor Gardó & Reiner Martin & Luis Molina & José María Serena, 2010. "The Impact of the Global Economic and Financial Crisis on Central Eastern and SouthEastern Europe (CESEE) and Latin America," Occasional Papers 1002, Banco de España.
    2. István Mák & Judit Páles, 2009. "The role of the FX swap market in the Hungarian financial system," MNB Bulletin (discontinued), Magyar Nemzeti Bank (Central Bank of Hungary), vol. 4(1), pages 24-34, May.
    3. Gardó, Sándor & Martin, Reiner, 2010. "The impact of the global economic and financial crisis on central, eastern and south-eastern Europe: A stock-taking exercise," Occasional Paper Series 114, European Central Bank.
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    Cited by:

    1. Fadejeva, Ludmila & Feldkircher, Martin & Reininger, Thomas, 2017. "International spillovers from Euro area and US credit and demand shocks: A focus on emerging Europe," Journal of International Money and Finance, Elsevier, vol. 70(C), pages 1-25.
    2. Markus Hameter & Mathias Lahnsteiner & Ursula Vogel, 2012. "Intra-Group Cross-Border Credit and Roll-Over Risks in CESEE – Evidence from Austrian Banks," Financial Stability Report, Oesterreichische Nationalbank (Austrian Central Bank), issue 23, pages 72-87.

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    More about this item

    Keywords

    Financial stability; banking sector; Central and Eastern Europe; refinancing; capital flows; financial crisis;
    All these keywords.

    JEL classification:

    • G15 - Financial Economics - - General Financial Markets - - - International Financial Markets
    • G21 - Financial Economics - - Financial Institutions and Services - - - Banks; Other Depository Institutions; Micro Finance Institutions; Mortgages
    • G32 - Financial Economics - - Corporate Finance and Governance - - - Financing Policy; Financial Risk and Risk Management; Capital and Ownership Structure; Value of Firms; Goodwill
    • O16 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Financial Markets; Saving and Capital Investment; Corporate Finance and Governance
    • O52 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Europe

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