The Impact of Funding Models and Foreign Bank Ownership on Bank Credit Growth : Is Central and Eastern Europe Different?

Feyen, Erik ; Letelier, Raquel ; Love, Inessa ; Maimbo, Samuel Munzele ; Rocha, Roberto

World Bank, Washington, DC

关键词: ACCESS TO FINANCE;    ACCESS TO FINANCIAL SERVICES;    AFFILIATES;    ASSETS;    AUSTRIAN NATIONAL BANK;   

DOI  :  10.1596/1813-9450-6783
RP-ID  :  WPS6783

学科分类：社会科学、人文和艺术（综合）

来源: World Bank Open Knowledge Repository

【 摘 要 】

This paper provides new evidence on thefactors affecting protracted credit contraction in the wakeof the global financial crisis. The paper applies panelvector autoregressions to a global panel that consists ofquarterly data for 41 countries for the period 2000-2011 anddocuments that domestic private credit growth is highlysensitive to cross-border funding shocks around the world.This relationship is significantly stronger in Central andEastern Europe, a region with considerably stronger foreignpresence, higher cross-border funding, and elevatedloan-to-deposit ratios compared with the rest of the world.The paper shows that high foreign ownership per se does notappear to explain credit response differences to foreignfunding shocks. Rather, there is a stronger response incountries that exhibit high loan-to-deposit ratios and ahigh reliance on foreign funding relative to local deposits.The results suggest that funding model differences were atthe heart of the post-crisis credit contraction in severalCentral and Eastern European countries. These findings haveimportant regulatory and supervisory implications foremerging countries in Central and Eastern Europe as well asfor other countries.