Perspectives for CESEE Countries
Edited by Ewald Nowotny, Doris Ritzberger-Grünwald and Helene Schuberth
Chapter 4: Rebalancing the CESEE economies: a crucial agenda for future years
Against the backdrop of conditions in 2014, ‘rebalancing’ is a topic that some might think of as backward looking. After all, rebalancing the economies of Central, Eastern and South-Eastern Europe (CESEE) has been under way for some time. Indeed, the rapid withdrawal of international liquidity from the markets of countries in which the EBRD is active, and the sharp spike in risk premia in the immediate aftermath of the 2009 crisis in essence forced the EBRD to address a number of vulnerabilities. National banking systems have adopted much more balanced funding: less foreign and more local sources of funding. As foreign wholesale and parent bank funding was rapidly withdrawn, banks began to compete more for domestic deposits. The loan-to-deposit ratio has come down significantly as a result. More recently, we have seen good success in opening domestic bond markets to bank refinancing, for instance in Romania, and a number of countries have pressed forward with developing a framework for securitised transactions. The European Bank for Reconstruction and Development (EBRD), since 2010, has strongly supported the development of local currency and capital markets through its dedicated initiative.
You are not authenticated to view the full text of this chapter or article.
Elgaronline requires a subscription or purchase to access the full text of books or journals. Please login through your library system or with your personal username and password on the homepage.
Non-subscribers can freely search the site, view abstracts/ extracts and download selected front matter and introductory chapters for personal use.
Your library may not have purchased all subject areas. If you are authenticated and think you should have access to this title, please contact your librarian.