| Description |
1 online resource (33 pages) |
| Series |
IMF Working Paper ; WP/18/3 |
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IMF working paper ; WP/18/3.
|
| Contents |
Cover; Contents; Abstract; I. Introduction; II. Literature Review; III. Data and Stylized Facts; A. Dataset construction; B. Stylized facts; IV. Empirical Estimation; A. Empirical evidence on drivers of real credit growth; B. Empirical evidence on drivers of differential credit growth; C. Robustness checks; V. Concluding Remarks; VI. References; VII. Appendix; Figures; Figure 1: Foreign banks play a major role in CESEE and beyond; Figure 2: Post-crisis changes in real credit growth dynamics; Figure 3: Differential credit growth narrowed following the global financial crisis |
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Figure 4: Foreign banks diversify lending across CESEE countriesFigure 5: Real credit growth vs. growth dynamics and bank-level characteristics; Figure 6: Drivers of credit growth: Table 1, regressions (1) and (2); Figure 7: Drivers of credit growth: Table 2, regressions (1) and (2); Figure 8: Drivers of differential credit growth vs. foreign bank credit, Table 3, regressions (2) and (4); Tables; Table 1: Drivers of credit growth; Table 2: Drivers of credit growth: domestic vs. foreign; Table 3: Drivers of foreign bank credit and differential credit growth; Table A 1: Data sources |
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Table A 2: Descriptive statisticsTable A 3: Alternative model specifications; Table A 4: Alternative estimation method (GMM) |
| Summary |
We use bank-level data on 16 CESEE economies over 2005-2014 to assess the role of foreign banks in the region's credit dynamics. We confirm that macroeconomic fundamentals of both host and home countries matter, as do the bank and parent bank characteristics. Moreover, we take a new approach by studying the drivers of differential credit growth between parent banks and their foreign subsidiaries. Host country macroeconomic fundamentals cease to play a significant role, while bank-level characteristics and in particular parent bank-level characteristics remain important. From policymakers' perspective, the paper provides further empirical evidence on the importance of monitoring the health of foreign parent banks as well as the potential regulatory changes in their home jurisdictions |
| Notes |
Print version record |
| Subject |
Macroeconomics.
|
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Banks and banking, Foreign.
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Banks and banking, Foreign
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Macroeconomics
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Multinational Firms.
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International Financial Markets.
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Globalization: Finance.
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Banks.
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All Countries.
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| Form |
Electronic book
|
| ISBN |
1484336925 |
|
1484336771 |
|
9781484336779 |
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9781484336922 |
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