IDEAS home Printed from https://ideas.repec.org/a/onb/oenbfs/y2006i11b1.html
   My bibliography  Save this article

Main Features of Recent Banking Sector Developments in Selected Southeastern European Countries

Author

Abstract

The purpose of this paper is to provide a comparative stock-taking exercise of recent banking sector developments in four current EU candidate countries (CC-4), namely the two acceding countries Bulgaria and Romania and the two negotiating candidates Croatia and Turkey. The paper finds that a strong increase in foreign liabilities allowed boosting domestic lending in particular to households. At the same time, banks’ credit risk that results from nonbanks’ foreign exchange exposure has significantly increased. Although in recent years (1) banks’ profitability has increased, (2) their share of nonperforming assets has declined and (3) their capital adequacy ratios can currently be considered as still sufficiently high (despite the recent domestic credit expansion), considerable risks to macroeconomic and macrofinancial stability may arise if foreign liabilities and domestic credit growth continue to increase at such a rapid pace in the future.

Suggested Citation

  • Peter Backé & Thomas Reininger, 2006. "Main Features of Recent Banking Sector Developments in Selected Southeastern European Countries," Financial Stability Report, Oesterreichische Nationalbank (Austrian Central Bank), issue 11, pages 66-82.
    • Handle: RePEc:onb:oenbfs:y:2006:i:11:b:1
    as

    Download full text from publisher

    File URL: https://www.oenb.at/dam/jcr:faf144ff-81bd-445c-9e73-e4030db9de88/fsr_11_special_topics_01_tcm16-43719.pdf
    Download Restriction: no
    ---><---

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Peter R Haiss & Wolfgang Rainer, 2012. "Credit Euroization in Eastern Europe: The ‘Foreign Funds’ Channel at Work," Comparative Economic Studies, Palgrave Macmillan;Association for Comparative Economic Studies, vol. 54(3), pages 471-505, September.
    2. repec:onb:oenbwp:y:2006:i:2:b:1 is not listed on IDEAS
    3. Peter Backé, 2006. "Bank Intermediation in Southeastern Europe: Depth and Structure," Focus on European Economic Integration, Oesterreichische Nationalbank (Austrian Central Bank), issue 2, pages 48-68.
    4. Diev, P. & Pouvelle, C., 2008. "Financial stability in the EU new Member States, acceding and candidate countries," Occasional papers 5, Banque de France.
    5. Mejra Festić & Sebastijan Repina & Alenka Kavkler, 2009. "The overheating of five EU new member states and cyclicality of systemic risk in the banking sector," Journal of Business Economics and Management, Taylor & Francis Journals, vol. 10(3), pages 219-232, May.
    6. Ms. Li L Ong & Andrea M. Maechler, 2009. "Foreign Banks in the CESE Countries: In for a Penny, in for a Pound?," IMF Working Papers 2009/054, International Monetary Fund.

    More about this item

    Keywords

    Banks;

    JEL classification:

    • G21 - Financial Economics - - Financial Institutions and Services - - - Banks; Other Depository Institutions; Micro Finance Institutions; Mortgages
    • P34 - Political Economy and Comparative Economic Systems - - Socialist Institutions and Their Transitions - - - Finance

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:onb:oenbfs:y:2006:i:11:b:1. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Stefan W. Schmitz (email available below). General contact details of provider: https://edirc.repec.org/data/oenbbat.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.