Foreign banks, foreign lending and cross-border contagion : evidence from the BIS data

Abstract

The paper discusses the role of foreign banks and foreign lending in central and east European countries from the financial-stability perspective using Bank for International Settlements data on global banking. The pattern of foreign bank involvement in the region is analyzed and the risk of cross-border contagion explored, focusing on three topics: the maturity of cross-border exposures, the concentration of reign creditors, and the existence of common creditors.

Keywords

• Foreign
• banks
• foreign
• lending
• cross-border
• contagion
• evidence
• data