IDEAS home Printed from https://ideas.repec.org/h/pal/pmschp/978-0-230-30221-1_2.html
   My bibliography  Save this book chapter

The Spread of the Financial Crisis to Central and Eastern Europe: Evidence from the BIS Data

In: Money, Banking and Financial Markets in Central and Eastern Europe

Author

Listed:
  • Dubravko Mihaljek

Abstract

Like other emerging markets, central and eastern European (CEE) economies weathered the financial crisis relatively well for over a year after it had started in major financial centres in August 2007. Growth and capital inflows were generally strong and financial markets for the most part performed well. But, starting in October 2008, the region got increasingly sucked into the global financial and economic maelstrom. As credit markets around the globe became dysfunctional in the aftermath of the collapse of Lehman Brothers, there was heavy and at times indiscriminate selling of emerging market assets, including CEE equities and bonds. There were also widespread expectations of a sudden stop in cross-border bank flows, drawing on the experience from previous emerging market crises. CEE appeared particularly vulnerable because it had financed its long expansion since 2002 to a major extent with foreign bank loans, which over time resulted in large external and internal imbalances in many countries. These vulnerabilities were starkly exposed in a bout of severe financial turmoil in February 2009, when it seemed likely that the CEE region would become another sad case in a long series of emerging market crises.

Suggested Citation

  • Dubravko Mihaljek, 2010. "The Spread of the Financial Crisis to Central and Eastern Europe: Evidence from the BIS Data," Palgrave Macmillan Studies in Banking and Financial Institutions, in: Roman Matousek (ed.), Money, Banking and Financial Markets in Central and Eastern Europe, chapter 2, pages 5-31, Palgrave Macmillan.
  • Handle: RePEc:pal:pmschp:978-0-230-30221-1_2
    DOI: 10.1057/9780230302211_2
    as

    Download full text from publisher

    To our knowledge, this item is not available for download. To find whether it is available, there are three options:
    1. Check below whether another version of this item is available online.
    2. Check on the provider's web page whether it is in fact available.
    3. Perform a search for a similarly titled item that would be available.

    Citations

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


    Cited by:

    1. Debora Revoltella & Fabio Mucci & Dubravko Mihaljek, 2010. "Properly pricing country risk: a model for pricing long-term fundamental risk applied to central and eastern European countries," Financial Theory and Practice, Institute of Public Finance, vol. 34(3), pages 219-245.
    2. Herrmann, Sabine & Mihaljek, Dubravko, 2010. "The determinants of cross-border bank flows to emerging markets: New empirical evidence on the spread of financial crises," Discussion Paper Series 1: Economic Studies 2010,17, Deutsche Bundesbank.
    3. Dubravko Mihaljek, 2014. "Domestic bank intermediation in emerging market economies during the 2008-09 crisis," Financial Theory and Practice, Institute of Public Finance, vol. 38(4), pages 381-404.
    4. Niţoi, Mihai & Clichici, Dorina & Moagăr-Poladian, Simona, 2019. "The effects of prudential policies on bank leverage and insolvency risk in Central and Eastern Europe," Economic Modelling, Elsevier, vol. 81(C), pages 148-160.
    5. Menna Bizuneh & Menelik Geremew, 2021. "Assessing the Impact of Covid-19 Pandemic on Emerging Market Economies’ (EMEs) Sovereign Bond Risk Premium and Fiscal Solvency," Eastern Economic Journal, Palgrave Macmillan;Eastern Economic Association, vol. 47(4), pages 519-545, October.
    6. repec:zbw:bofitp:2011_003 is not listed on IDEAS

    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:pal:pmschp:978-0-230-30221-1_2. 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: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: http://www.palgrave.com .

    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.