Foreign Currency Lending in Emerging Europe: Bank Level Evidence

M. Brown, R. de Haas

Research output: Working paperDiscussion paperOther research output

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Abstract

Based on survey data from 193 banks in 20 countries we provide the first bank-level analysis of the determinants of foreign currency (FX) lending in Emerging Europe. We find that FX lending by all banks, regardless of their ownership structure, is strongly determined by the macroeconomic environment. We find no evidence of foreign banks ‘pushing’ FX loans indiscriminately because of easier access to wholesale funding in foreign currency. In fact, while foreign banks do lend more in FX to corporate clients, they do not do so to retail clients. We also find that after a take-over by a foreign bank, the acquired bank does not increase its FX lending any faster than a bank which remains in domestic hands.
Original languageEnglish
Place of PublicationTilburg
PublisherFinance
Number of pages46
Volume2010-135
Publication statusPublished - 2010

Publication series

NameCentER Discussion Paper
Volume2010-135

Fingerprint

Foreign currency
Lending
Foreign banks
Loans
Retail
Survey data
Macroeconomics
Ownership structure
Funding
Levels of analysis

Keywords

  • Foreign currency lending
  • currency mismatch
  • foreign banks
  • financial stability

Cite this

Brown, M., & de Haas, R. (2010). Foreign Currency Lending in Emerging Europe: Bank Level Evidence. (CentER Discussion Paper; Vol. 2010-135). Tilburg: Finance.
Brown, M. ; de Haas, R. / Foreign Currency Lending in Emerging Europe : Bank Level Evidence. Tilburg : Finance, 2010. (CentER Discussion Paper).
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Brown, M & de Haas, R 2010 'Foreign Currency Lending in Emerging Europe: Bank Level Evidence' CentER Discussion Paper, vol. 2010-135, Finance, Tilburg.

Foreign Currency Lending in Emerging Europe : Bank Level Evidence. / Brown, M.; de Haas, R.

Tilburg : Finance, 2010. (CentER Discussion Paper; Vol. 2010-135).

Research output: Working paperDiscussion paperOther research output

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Brown M, de Haas R. Foreign Currency Lending in Emerging Europe: Bank Level Evidence. Tilburg: Finance. 2010. (CentER Discussion Paper).