Volume : IV, Issue : X, October - 2015

Banking System in the Central and Eastern European Countries

Lumnije Tha I

Abstract :

Due to the socialist system which had prevailed over the CEE countries, the banking sector in these countries had not been developed. Therefore, given the importance of this sector in economic development, the goal of this paper is to analyse the role of banks of the CEE countries, their history of development, the effects of credit growth and the impact of the financial crisis of 2008/09. The banking sector in CEE countries, and particularly in the SEE countries in the early stages of transition (period 1990–2000), was characterized by the participation in large foreign–owned banks, which offered a wide range of products and services to clients. At the beginning of the consolidation of banks, credit growth was greatly expanded, but this was discontinued with the introduction to the recent financial crisis. Credit growth caused the creation of non–performing loans. However, the supervisory authority implemented reforms to avoid non–performing loans (NPL) in the balance sheets of banks. Also, in order for the level of NPL to be lower, banks will have to implement the new rules of Basel III.

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Article: Download PDF   DOI : 10.36106/ijsr  

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Lumnije Tha�i Banking System in the Central and Eastern European Countries International Journal of Scientific Research, Vol : 4, Issue : 10 October 2015

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