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Impact of Foreign-Owned Banks on Financial Stability

  • Małgorzata Iwanicz-Drozdowska
  • Paweł Smaga
  • Bartosz Witkowski
Chapter
Part of the Studies in Economic Transition book series (SET)

Abstract

This chapter characterizes the stability of banking sectors in the CESEE countries before, during, and after the global financial crisis, while focusing on the role played by foreign-owned banks. The starting point is the analysis of the impact of the crisis in the region, as well as the policy and regulatory responses aimed at containing the effects of materialization of systemic risks and contagion from parent banks. Further, focus is put on potential measures of financial stability in the banking sector from both theoretical and empirical perspectives of the CESEE countries. The last part of the chapter includes an empirical investigation of the factors which determine banking sector’s stability in the CESEEs and the potential role of foreign-owned banks.

Keywords

Credit boom Credit growth Global financial crisis Financial stability Systemic risk Z-Score 

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Copyright information

© The Author(s) 2018

Authors and Affiliations

  • Małgorzata Iwanicz-Drozdowska
    • 1
  • Paweł Smaga
    • 1
  • Bartosz Witkowski
    • 1
  1. 1.SGH Warsaw School of EconomicsWarsawPoland

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