Financial stability challenges in candidate countries : managing the transition to deeper and more market-oriented financial systems
by the IRC Expert Group on Financial Stability Challenges in Candidate Countries ; authors Mr Thierry Bracke/Mr Adalbert Winkler (chairmen), Mr Andre Geis (secretary), Mr Maurizio Habib, Mr Csaba Móré, Ms Éva Katalin Polgár, Mr Anthony De Lannoy, Ms Valerie Herzberg, Mr Emidio Cocozza, Mr Hubert Schokker, Mr Peter Backé, Mr Sándor Gardó, Mr Tomasz Chmielewski, Ms Tina Zumer
This paper reviews financial stability challenges in the EU candidate countries Croatia, Turkey and the former Yugoslav Republic of Macedonia. It examines the fi nancial sectors in these three economies, which, while at very different stages of development and embedded in quite diverse economic settings, are all in a process of rapid financial deepening. This manifests itself most clearly in the rapid pace of growth in credit to the private sector. This process of financial deepening is largely a natural and welcome catching-up phenomenon, but it has also increased the credit risks borne by the banking sectors in the three economies. These credit risks are compounded by the widespread use of foreign currency-denominated or -indexed loans, leaving unhedged bank customers exposed to potential swings in exchange rates or foreign interest rates. Moreover, these financial risks form part of a broader nexus of vulnerabilities in the economies concerned, in particular the external vulnerabilities arising from increasing private sector external indebtedness. That said, the paper also fi nds that the authorities in the three countries have taken several policy actions to reduce these fi nancial and external vulnerabilities and to strengthen the resilience of the financial sectors.
Year of publication: |
[2008]
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Other Persons: | Bracke, Thierry (contributor) ; Geis, André (contributor) ; Habib, Maurizio (contributor) ; Móré, Csaba (contributor) ; Polgár, Éva Katalin (contributor) ; Winkler, Adalbert (contributor) ; Cocozza, Emidio (contributor) ; Backé, Peter (contributor) |
Institutions: | Europäische Zentralbank / Expert Group on Financial Stability Challenges in Candidate Countries (issuing body) |
Publisher: |
Frankfurt am Main, Germany : European Central Bank |
Subject: | Europe | banking sector | vulnerability indicators | capital inflows | emerging markets | Finanzsektor | Financial sector | Bankenreform | Banking reform | Kreditgeschäft | Bank lending | Kapitalimport | Capital imports | Schwellenländer | Emerging economies | Systemtransformation | Economic transition | Kroatien | Croatia | Nordmazedonien | North Macedonia | Türkei | Turkey |
Saved in:
freely available
Extent: | 1 Online-Ressource (circa 66 Seiten) Illustrationen |
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Series: | Occasional paper series / European Central Bank. - Frankfurt, M. : European Central Bank, ISSN 1725-6534, ZDB-ID 2123791-8. - Vol. no 95 (September 2008) |
Type of publication: | Book / Working Paper |
Type of publication (narrower categories): | Graue Literatur ; Non-commercial literature ; Amtsdruckschrift ; Government document |
Language: | English |
Other identifiers: | hdl:10419/154548 [Handle] |
Classification: | F32 - Current Account Adjustment; Short-Term Capital Movements ; F41 - Open Economy Macroeconomics ; G21 - Banks; Other Depository Institutions; Mortgages ; G28 - Government Policy and Regulation |
Source: | ECONIS - Online Catalogue of the ZBW |
Persistent link: https://www.econbiz.de/10011639727