The catching-up of the banking sector in South-Eastern Europe. A fragile development model dominated by credit growth
The catching-up of the banking sector in South-Eastern Europe. A fragile development model dominated by credit growth
Author(s): Eszter KazinczySubject(s): Supranational / Global Economy, International relations/trade, Economic development, Financial Markets
Published by: Akadémiai Kiadó
Keywords: Southeast Europe; banking sector; economic growth; catching-up;
Summary/Abstract: The paper reviews the commercial banking sector’s development during the booming years before the current global crisis in Southeast Europe. Based on the analysis of a comprehensive dataset, a common, simplified economic model could be outlined for this period, where GDP growth has been fuelled by rapid credit growth. The latter was boosted both by foreign funding and swift deposit growth volumes. Nevertheless, beside the favourable catch-up process, the level of external imbalances, credit growth and currency mismatches raised sustainability concerns and the risk of overheating.
Journal: Society and Economy. In Central and Eastern Europe ǀ Journal of the Corvinus University of Budapest
- Issue Year: 35/2013
- Issue No: 4
- Page Range: 493-511
- Page Count: 19
- Language: English