Financial stability challenges in EU candidate and potential candidate countries
This paper reviews financial stability challenges in countries preparing for EU membership, i.e. Albania, Bosnia and Herzegovina, Kosovo*, Iceland, the former Yugoslav Republic of Macedonia, Montenegro, Serbia and Turkey. The paper has been prepared by an expert group of staff from the European Syst...
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ftzbwkiel:oai:econstor.eu:10419/154617 2024-01-07T09:44:14+01:00 Financial stability challenges in EU candidate and potential candidate countries Ramon-Ballester, Francisco Pulst, Daniela Posch, Michaela Savelin, Li Manolov, Stoyan Huljak, Ivan Kuhles, Winona Jimborean, Ramona Papazoglou, Christos Oláh, Zsolt Dancsik, Bálint Colabella, Andrea Moder, Isabella Macki, Piotr Ĉervená, Marianna contributors, Other Shehu, Klodion Maloku, Krenare Vaskov, Mihajlo 2015 http://hdl.handle.net/10419/154617 eng eng Frankfurt a. M.: European Central Bank (ECB) Series: ECB Occasional Paper No. 164 gbv-ppn:837700183 http://hdl.handle.net/10419/154617 RePEc:ecb:ecbops:2015164 http://www.econstor.eu/dspace/Nutzungsbedingungen ddc:330 F31 F34 F36 F41 G21 G28 banking sector banking union cross-border flows deleveraging emerging markets Europe foreign exchange lending doc-type:report 2015 ftzbwkiel 2023-12-11T00:44:28Z This paper reviews financial stability challenges in countries preparing for EU membership, i.e. Albania, Bosnia and Herzegovina, Kosovo*, Iceland, the former Yugoslav Republic of Macedonia, Montenegro, Serbia and Turkey. The paper has been prepared by an expert group of staff from the European System of Central Banks (ESCB) in which experts from EU candidate and potential candidate country central banks also participated. The paper finds that near-term challenges to financial stability primarily relate to credit risks from the generally weak economic dynamics in combination with already high non-performing loan burdens in many banking systems, especially in the Western Balkans. In the medium-term, challenges to financial stability stem from indirect market risks to banks related to foreign currency lending as well as lingering exposures to funding risks, with Western Balkan economies again appearing as relatively more vulnerable. Looking further ahead, the paper highlights that the magnitude of the challenge to reach a ‘new banking normal’ for banking systems in these countries appears to remain sizeable, while noting that the establishment of adequate home-host cooperation channels would be important to help maximise the potential benefits to third parties stemming from centralised banking supervision under the Single Supervisory Mechanism (SSM). Report Iceland EconStor (German National Library of Economics, ZBW) |
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EconStor (German National Library of Economics, ZBW) |
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ftzbwkiel |
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English |
topic |
ddc:330 F31 F34 F36 F41 G21 G28 banking sector banking union cross-border flows deleveraging emerging markets Europe foreign exchange lending |
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ddc:330 F31 F34 F36 F41 G21 G28 banking sector banking union cross-border flows deleveraging emerging markets Europe foreign exchange lending Ramon-Ballester, Francisco Pulst, Daniela Posch, Michaela Savelin, Li Manolov, Stoyan Huljak, Ivan Kuhles, Winona Jimborean, Ramona Papazoglou, Christos Oláh, Zsolt Dancsik, Bálint Colabella, Andrea Moder, Isabella Macki, Piotr Ĉervená, Marianna contributors, Other Shehu, Klodion Maloku, Krenare Vaskov, Mihajlo Financial stability challenges in EU candidate and potential candidate countries |
topic_facet |
ddc:330 F31 F34 F36 F41 G21 G28 banking sector banking union cross-border flows deleveraging emerging markets Europe foreign exchange lending |
description |
This paper reviews financial stability challenges in countries preparing for EU membership, i.e. Albania, Bosnia and Herzegovina, Kosovo*, Iceland, the former Yugoslav Republic of Macedonia, Montenegro, Serbia and Turkey. The paper has been prepared by an expert group of staff from the European System of Central Banks (ESCB) in which experts from EU candidate and potential candidate country central banks also participated. The paper finds that near-term challenges to financial stability primarily relate to credit risks from the generally weak economic dynamics in combination with already high non-performing loan burdens in many banking systems, especially in the Western Balkans. In the medium-term, challenges to financial stability stem from indirect market risks to banks related to foreign currency lending as well as lingering exposures to funding risks, with Western Balkan economies again appearing as relatively more vulnerable. Looking further ahead, the paper highlights that the magnitude of the challenge to reach a ‘new banking normal’ for banking systems in these countries appears to remain sizeable, while noting that the establishment of adequate home-host cooperation channels would be important to help maximise the potential benefits to third parties stemming from centralised banking supervision under the Single Supervisory Mechanism (SSM). |
format |
Report |
author |
Ramon-Ballester, Francisco Pulst, Daniela Posch, Michaela Savelin, Li Manolov, Stoyan Huljak, Ivan Kuhles, Winona Jimborean, Ramona Papazoglou, Christos Oláh, Zsolt Dancsik, Bálint Colabella, Andrea Moder, Isabella Macki, Piotr Ĉervená, Marianna contributors, Other Shehu, Klodion Maloku, Krenare Vaskov, Mihajlo |
author_facet |
Ramon-Ballester, Francisco Pulst, Daniela Posch, Michaela Savelin, Li Manolov, Stoyan Huljak, Ivan Kuhles, Winona Jimborean, Ramona Papazoglou, Christos Oláh, Zsolt Dancsik, Bálint Colabella, Andrea Moder, Isabella Macki, Piotr Ĉervená, Marianna contributors, Other Shehu, Klodion Maloku, Krenare Vaskov, Mihajlo |
author_sort |
Ramon-Ballester, Francisco |
title |
Financial stability challenges in EU candidate and potential candidate countries |
title_short |
Financial stability challenges in EU candidate and potential candidate countries |
title_full |
Financial stability challenges in EU candidate and potential candidate countries |
title_fullStr |
Financial stability challenges in EU candidate and potential candidate countries |
title_full_unstemmed |
Financial stability challenges in EU candidate and potential candidate countries |
title_sort |
financial stability challenges in eu candidate and potential candidate countries |
publisher |
Frankfurt a. M.: European Central Bank (ECB) |
publishDate |
2015 |
url |
http://hdl.handle.net/10419/154617 |
genre |
Iceland |
genre_facet |
Iceland |
op_relation |
Series: ECB Occasional Paper No. 164 gbv-ppn:837700183 http://hdl.handle.net/10419/154617 RePEc:ecb:ecbops:2015164 |
op_rights |
http://www.econstor.eu/dspace/Nutzungsbedingungen |
_version_ |
1787425589507915776 |