TY - BOOK ID - 85504060 TI - Foreign Banks and Credit Dynamics in CESEE PY - 2018 SN - 1484336925 1484336895 PB - Washington, D.C. : International Monetary Fund, DB - UniCat KW - Banks and Banking KW - Money and Monetary Policy KW - Industries: Financial Services KW - Banks KW - Depository Institutions KW - Micro Finance Institutions KW - Mortgages KW - International Financial Markets KW - Multinational Firms KW - International Business KW - Globalization: Finance KW - Monetary Policy, Central Banking, and the Supply of Money and Credit: General KW - Banking KW - Monetary economics KW - Finance KW - Credit KW - Foreign banks KW - Bank credit KW - Nonperforming loans KW - Money KW - Financial institutions KW - Credit booms KW - Banks and banking, Foreign KW - Banks and banking KW - Loans KW - Czech Republic UR - https://www.unicat.be/uniCat?func=search&query=sysid:85504060 AB - We use bank-level data on 16 CESEE economies over 2005-2014 to assess the role of foreign banks in the region’s credit dynamics. We confirm that macroeconomic fundamentals of both host and home countries matter, as do the bank and parent bank characteristics. Moreover, we take a new approach by studying the drivers of differential credit growth between parent banks and their foreign subsidiaries. Host country macroeconomic fundamentals cease to play a significant role, while bank-level characteristics and in particular parent bank-level characteristics remain important. From policymakers’ perspective, the paper provides further empirical evidence on the importance of monitoring the health of foreign parent banks as well as the potential regulatory changes in their home jurisdictions. ER -