The paper reviews the commercial banking sector’s development during the booming years before the current global crisis in Southeast Europe. Based on the analysis of a comprehensive dataset, a common, simplified economic model could be outlined for this period, where GDP growth has been fuelled by rapid credit growth. The latter was boosted both by foreign funding and swift deposit growth volumes. Nevertheless, beside the favourable catch-up process, the level of external imbalances, credit growth and currency mismatches raised sustainability concerns and the risk of overheating.
Backé, P. - Walko, Z. (2006): Bank Intermediation in Southeastern Europe: Depth and Structure. In: Focus on European Economic Integration 2006(2). Vienna: Oesterreichische Nationalbank.
Walko Z, '', in Focus on European Economic Integration, (2006) -.
Walko ZFocus on European Economic Integration2006)| false
Levine R, '', in Finance and Growth. Theory, Evidence, and Mechanisms, (2003) -.
Levine RFinance and Growth. Theory, Evidence, and Mechanisms2003)| false
Martin, R. - Zauchinger, C. (2009): Recent Developments in the Baltics and Southeastern European Countries with Low Nominal Exchange Rate Flexibility. Österreichische Nationalbank, Proceedings of OeNB Workshops, Stability and Security 15.
Zauchinger C, '', in Proceedings of OeNB Workshops, Stability and Security, (2009) -.
Zauchinger CProceedings of OeNB Workshops, Stability and Security2009)| false
Patrick, H. T. (1966): Financial Development and Economic Growth in Underdeveloped Countries. Economic Development and Cultural Change 14(2): 174–189.
Patrick H T, 'Financial Development and Economic Growth in Underdeveloped Countries' (1966) 14Economic Development and Cultural Change: 174-189.
Patrick H TFinancial Development and Economic Growth in Underdeveloped CountriesEconomic Development and Cultural Change196614174189)| false