Prague Economic Papers 2015, 24(4):386-398 | DOI: 10.18267/j.pep.543

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

Mejra Festić
Bank of Slovenia, Ljubljana, Slovenia (mejra.festic@bsi.si).

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.

Keywords: foreign ownership, cyclicality, stability, crisis, credit supply
JEL classification: E32, E51, F34, G21

Published: January 1, 2015  Show citation

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Festić, M. (2015). The Stability of the Credit Supply in the Globalized Banking Sector Environment: The Case of the EU New Member States-10. Prague Economic Papers24(4), 386-398. doi: 10.18267/j.pep.543
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