Banking contagion under different exchange rate regimes in CEE
Banking contagion under different exchange rate regimes in CEE
Author(s): GÁBOR KUTASISubject(s): Economic history, Transformation Period (1990 - 2010), Financial Markets
Published by: Akadémiai Kiadó
Keywords: financial contagion; banking, Central and Eastern Europe; foreign exchange rate; non-performing loan;
Summary/Abstract: The global crisis of 2008 caused both liquidity shortage and increasing insolvency in the banking system. The study focuses on credit default contagion in the Central and Eastern European (CEE) region, which originated in bank runs generated by non-performing loans granted to non financial clients. In terms of methodology, the paper relies on the one hand on review of the literature, and on the other hand on a data survey with comparative and regression analysis. To uncover credit default contagion, the research focuses on the combined impact of foreign exchange rates and foreign private indebtedness.
Journal: Society and Economy. In Central and Eastern Europe ǀ Journal of the Corvinus University of Budapest
- Issue Year: 37/2015
- Issue No: 1
- Page Range: 109-127
- Page Count: 19
- Language: English