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Potential risks for home and host countries stemming from activities of multinational banks in the CEE10 region

Zdeněk Čech, Anton Jevčák, Corina Weidinger Sosdean, European Commission

Potential risks for home and host countries stemming from activities of multinational banks in the CEE10 regionpdf(176 kB) Choose translations of the previous link 

This policy brief analyzes whether the exposure to the CEE10 region is a risk for parent banks. Simultaneously, risks for the CEE10 countries implied by the strong presence of foreign-owned banks as well as possible feedback loops are discussed.

Ongoing financial market turbulences within the euro area are likely to have a negative impact on the CEE10 region as a whole, which should, nevertheless, vary considerably across countries. Likely spill-overs into the real economy will affect the entire CEE10 region, as it was the case in 2008-09. However, the impact on banking sector performance should again vary considerably.

(ECFIN Economic Briefs. 15. February 2012. Brussels. pdf. )

KC-AY-11-015-EN-N (online)