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The Stability of the Credit Supply in the Globalized Banking Sector Environment: The Case of the EU New Member States-10

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  • Mejra Festić

Abstract

The influence of foreign banks on a host country's lending depends on several factors, including the policy of the parent bank, the strategy of entry, economic cycles in the home country and abroad, growth prospects, the indebtedness of commitments and the capital adequacy of the parent bank. During the most recent economic crisis, the credit supply of foreign banks in the 10 new European Union (EU) Member States has not remained stable in the crisis. More specifically, we find evidence that foreign banks have cut the credit supply slightly in the new EU Member States.

Suggested Citation

  • Mejra Festić, 2015. "The Stability of the Credit Supply in the Globalized Banking Sector Environment: The Case of the EU New Member States-10," Prague Economic Papers, Prague University of Economics and Business, vol. 2015(4), pages 386-398.
    • Handle: RePEc:prg:jnlpep:v:2015:y:2015:i:4:id:543:p:386-398
    DOI: 10.18267/j.pep.543
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    More about this item

    Keywords

    foreign ownership; cyclicality; stability; crisis; credit supply;
    All these keywords.

    JEL classification:

    • E32 - Macroeconomics and Monetary Economics - - Prices, Business Fluctuations, and Cycles - - - Business Fluctuations; Cycles
    • E51 - Macroeconomics and Monetary Economics - - Monetary Policy, Central Banking, and the Supply of Money and Credit - - - Money Supply; Credit; Money Multipliers
    • F34 - International Economics - - International Finance - - - International Lending and Debt Problems
    • G21 - Financial Economics - - Financial Institutions and Services - - - Banks; Other Depository Institutions; Micro Finance Institutions; Mortgages

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