Cover IMF Working Papers
Regional Financial Interlinkages and Financial Contagion within Europe
Author: Ms. Inci Ötker, Mr. Karl Driessenhttps://orcid.org/0000-0002-8445-8187, and Ms. Zsofia Arvai
Series:
IMF Working Papers
Volume/Issue:
Volume 2009: Issue 006
Language:
English
Publication Date:
01 Jan 2009
DOI:
https://doi.org/10.5089/9781451871531.001
ISBN:
9781451871531
ISSN:
1018-5941
Pages:
52
Keywords:
WP; CESE country; lender; bank; Austria; Financial linkages; contagion; spillover effects; funding exposure; credit growth; Central; Eastern; Southeastern Europe; emerging markets; common lender; CESE bank; CESE economy; parent bank; Commercial banks; Foreign currency exposure; Credit; Foreign banks; Financial contagion; Western Europe; Baltics; Europe
Legal-disclaimer:
IMF Working Papers describe research in progress by the author(s) and are published to elicit comments and to encourage debate. The views expressed in IMF Working Papers are those of the author(s) and do not necessarily represent the views of the IMF, its Executive Board, or IMF management.
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This paper focuses on financial interlinkages within Europe and potential contagion channeled through these interlinkages. It discusses the increased role of external financing as a source of funding for credit growth; analyzes potential channels of contagion through financial linkages; and assesses the magnitude of cross-border exposures between emerging and western European countries. Based on the stylized facts on these exposures, the paper provides simple indices of exposure to regional contagion that could help identify the likely pressure points and capture potential spillover effects and propagation channels of a regional shock originating from a given country.
Cover IMF Working Papers
IMF Working Papers
ISSN:
1018-5941
Publisher:
International Monetary Fund