IDEAS home Printed from https://ideas.repec.org/p/wii/mpaper/mr2018-12.html
   My bibliography  Save this paper

Monthly Report No. 12/2018

Author

Listed:
  • Amat Adarov

    (The Vienna Institute for International Economic Studies, wiiw)

  • Mario Holzner

    (The Vienna Institute for International Economic Studies, wiiw)

  • Olga Pindyuk

    (The Vienna Institute for International Economic Studies, wiiw)

  • Goran Vukšić

Abstract

Graph of the month Openness of CESEE economies, 2017 Opinion corner What can be expected from the Strategy for the adoption of the euro in Croatia? by Goran Vukšić European financial markets ten years after the global crisis by Amat Adarov As of end-2018, while Europe is generally enjoying robust economic growth, the outlook is clouded with downside risks emanating from macroeconomic and political challenges. In some countries high non-performing loans remain an issue, while in others ample liquidity on account of years of ultra-easy monetary policy reinforced potentially unsustainable dynamics in certain asset markets. This highlights the need to accelerate reforms focusing on the resilience and sustainability of European financial market architecture – still largely dominated by banks – in line with the Banking Union and the Capital Markets Union initiatives. The process of financialisation in Central, East and Southeast Europe by Mario Holzner Financialisation has been particularly strong in the three small Baltic states, followed by countries from CEE and, at a certain distance, by economies of SEE and the CIS. This pattern can be observed in the deregulation indicator as well as in different indicators of foreign financial inflows. However, an important distinction can be made with regard to the structure of inward FDI stocks in the CESEE region. Deleveraging in CESEE continues by Olga Pindyuk The quantitative easing launched by the ECB was supposed to provide liquidity to the banking sector in order to make it easier and cheaper for banks to extend loans to companies and households. By now it has mostly failed to achieve this goal as foreign banks in CESEE have not restored their pre-crisis positions. Financial institutions in many countries of the region have carried on liquidity hoarding and restrained credit expansion, while both non-financial corporations and households have continued deleveraging despite low interest rates on loans. Monthly and quarterly statistics for Central, East and Southeast Europe

Suggested Citation

  • Amat Adarov & Mario Holzner & Olga Pindyuk & Goran Vukšić, 2018. "Monthly Report No. 12/2018," wiiw Monthly Reports 2018-12, The Vienna Institute for International Economic Studies, wiiw.
    • Handle: RePEc:wii:mpaper:mr:2018-12
    as

    Download full text from publisher

    File URL: https://wiiw.ac.at/monthly-report-no-12-2018-dlp-4777.pdf
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Chinn, Menzie D. & Ito, Hiro, 2006. "What matters for financial development? Capital controls, institutions, and interactions," Journal of Development Economics, Elsevier, vol. 81(1), pages 163-192, October.
    2. Daniela Veronica Gabor, 2012. "The Road to Financialization in Central and Eastern Europe: The Early Policies and Politics of Stabilizing Transition," Review of Political Economy, Taylor & Francis Journals, vol. 24(2), pages 227-249, April.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Kazandziska, Milka, 2022. "Financialization in emerging Europe," IPE Working Papers 183/2022, Berlin School of Economics and Law, Institute for International Political Economy (IPE).
    2. Cooray, Arusha, 2011. "The role of the government in financial sector development," Economic Modelling, Elsevier, vol. 28(3), pages 928-938, May.
    3. Ayad Hicham, 2017. "Financial Development and Poverty Reduction Nexus: A Co-Integration and Causality Analysis in Selected Arabic Countries," Academic Journal of Economic Studies, Faculty of Finance, Banking and Accountancy Bucharest,"Dimitrie Cantemir" Christian University Bucharest, vol. 3(2), pages 28-35, June.
    4. Aygun Garayeva & Gulzar Tahirova, 2017. "Government Spending Effectiveness and the Quality of Fiscal Institutions," Business & Management Compass, University of Economics Varna, issue 2, pages 128-143.
    5. Heng, Dyna, 2011. "Capital flows and real exchange rate: does financial development matter?," MPRA Paper 48553, University Library of Munich, Germany, revised May 2012.
    6. Hartwell, Christopher A., 2014. "The impact of institutional volatility on financial volatility in transition economies : a GARCH family approach," BOFIT Discussion Papers 6/2014, Bank of Finland, Institute for Economies in Transition.
    7. Tongurai, Jittima & Vithessonthi, Chaiporn, 2018. "The impact of the banking sector on economic structure and growth," International Review of Financial Analysis, Elsevier, vol. 56(C), pages 193-207.
    8. Oguzhan Akgun & David Bartolini & Boris Cournède, 2017. "The capacity of governments to raise taxes," OECD Economics Department Working Papers 1407, OECD Publishing.
    9. Aizenman, Joshua & Ito, Hiro & Pasricha, Gurnain Kaur, 2022. "Central bank swap arrangements in the COVID-19 crisis," Journal of International Money and Finance, Elsevier, vol. 122(C).
    10. Xinhua Gu & Yang Zhang & Xiao Chang, 2017. "The role of financial systems for cross-country differences in the link between income and consumption inequality," Applied Economics, Taylor & Francis Journals, vol. 49(24), pages 2365-2378, May.
    11. Cakici, Nusret & Zaremba, Adam, 2022. "Salience theory and the cross-section of stock returns: International and further evidence," Journal of Financial Economics, Elsevier, vol. 146(2), pages 689-725.
    12. Norring, Anni, 2022. "Taming the tides of capital: Review of capital controls and macroprudential policy in emerging economies," BoF Economics Review 1/2022, Bank of Finland.
    13. Michael Patrick Curran & Matthew J. Fagerstrom, 2019. "Monetary Growth and Financial Sector Wages," Villanova School of Business Department of Economics and Statistics Working Paper Series 41, Villanova School of Business Department of Economics and Statistics.
    14. Steiner, Andreas, 2013. "The accumulation of foreign exchange by central banks: Fear of capital mobility?," Journal of Macroeconomics, Elsevier, vol. 38(PB), pages 409-427.
    15. Towfiqul Islam Khan & Mashfique Ibne Akbar, 2015. "Illicit Financial Flow in view of Financing the Post-2015 Development Agenda," Southern Voice Occasional Paper 25, Southern Voice.
    16. Habib, Maurizio Michael & Stracca, Livio & Venditti, Fabrizio, 2020. "The fundamentals of safe assets," Journal of International Money and Finance, Elsevier, vol. 102(C).
    17. Engel, Charles, 2016. "Macroprudential policy under high capital mobility: policy implications from an academic perspective," Journal of the Japanese and International Economies, Elsevier, vol. 42(C), pages 162-172.
    18. Chrysost Bangake & Aram Belhadj & Nabil Jedlane, 2007. "Towards Maghreb Monetary Unification: What does the Theory and History Tell Us?," Post-Print halshs-00366757, HAL.
    19. Wei, Shang-Jin & Tong, Hui, 2012. "Does Trade Globalization Induce or Inhibit Corporate Transparency? Unbundling the Growth Potential and Product Market Competiti," CEPR Discussion Papers 8836, C.E.P.R. Discussion Papers.
    20. Auer, Raphael A. & Mehrotra, Aaron, 2014. "Trade linkages and the globalisation of inflation in Asia and the Pacific," Journal of International Money and Finance, Elsevier, vol. 49(PA), pages 129-151.

    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:wii:mpaper:mr:2018-12. 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.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with 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: Customer service (email available below). General contact details of provider: https://edirc.repec.org/data/wiiwwat.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.