Foreign banks again reduce funding in east Europe

In the third quarter of 2015, foreign banks again reduced the funding of emerging European economies, with Croatia recording a markedly milder fall than in the second quarter, according to a Vienna Initiative survey.

Over July-September 2015, foreign bank’s funding in Central, Eastern, and Southeastern Europe (CESEE) decreased 0.3 percent of GDP. The same fall was recorded in the previous quarter.

The Vienna Initiative was founded, after the 2008 global financial crisis, by the European Investment Bank, the European Commission, the European Bank for Reconstruction and Development, the International Monetary Fund  and the World Bank in order to prevent, in cooperation with the private sector, a withdrawal of foreign banks from emerging European economies.

The survey covers 21 countries and is based on Bank for International Settlements data. Financing decreased in most CESEE countries.

In Q3 2015, Croatia was among the countries which recorded a fall in foreign bank’s funding of 0.7% of GDP, together with Poland, Romania and Slovenia. In Q2, the fall in Croatia was 1.4% of GDP, the same as in Bulgaria, Russia and Ukraine.

The fall in foreign bank’s funding in Croatia began in Q1 2015, 1.9% of GDP, after a 0.2% increase in Q4 2014. Between Q4 2014 and Q3 2015, this fall was 3.8% of GDP.

Last update: Wed, 17/02/2016 - 18:50
Author: 

Related

More from Business

Financial leaders in Davos optimistic about US, but see trade risk

The US economy will likely profit from the planned policies of its new president, as long as Donald Trump does not...

Facebook to build data centre in Denmark

The Danish city of Odense and social media giant Facebook announced on Thursday the city was to host a new European...

Freight train from China crosses 12,000 kilometres to London

The first Britain-bound freight train from China arrived in London on Wednesday, completing an 18-day trip across...

US prosecutors finalize 7.2-bln-dollar settlement with Deutsche Bank

The US Justice Department announced a 7.2-billion-dollar settlement Tuesday with Deutsche Bank over allegations that...

General Motors announces 1-billion-dollar investment in US workforce

General Motors will join other carmakers in opting to invest and hire inside the United States, the company...