Financial Fragility or What Went Right and What Could Go Wrong in Central European Banking? [chapter]

Christian E. Weller, Jürgen von Hagen
2000 Central Europe towards Monetary Union: Macroeconomic Underpinnings and Financial Reputation  
Despite the fact that banks in Central Europe are burdened by extraordinarily high bad loan ratios, the recent financial crisis in South East Asia and Russia, has not led to a massive failure of banks in the region. In this paper, we study economic trends and policies that may have helped to insulate CEECs from international financial contagion. Answering what went right over the past few years may not only help to further positive developments, but it may also highlight possible weaknesses
more » ... ible weaknesses that could result in future financial instabilities in the banking sectors of CEECs. Using data available from the IMF, and the BIS for nine Central European economies (Croatia,
doi:10.1007/978-1-4615-1385-8_7 fatcat:zyhujzzno5anndhlczlnorsnby