Banking stability during the economic transformation process in selected countries of the Western Balkans - Publication - MOST Wiedzy

Search

Banking stability during the economic transformation process in selected countries of the Western Balkans

Abstract

Economic transformation is still an ongoing process in many European countries. Despite common economic roots, the current economic situations are developing differently in different countries. This article will consider the process of economic transformation in terms of the banking sector. It aims to assess the level of banking stability throughout the transformation process in the Western Balkan region, and to assess the determinates of banking stability. A tool based on the Macroeconomic Stability Pentagon is used to estimate banking stability. The study finds that in most of the researched countries, the most common determinates of banking stability are market concentration and market competition. Additionally, it finds that the stability of banking systems in two countries – relatively the most transformed in the region (Croatia) and the one which is considered the most delayed (Serbia) – are influenced by similar factors, while the other banking systems in the region, despite common roots and experiences, vary in terms of the factors affecting their banking stability.

Citations

  • 0

    CrossRef

  • 0

    Web of Science

  • 0

    Scopus

Details

Category:
Articles
Type:
artykuły w czasopismach
Published in:
Economic Research-Ekonomska Istrazivanja pages 2532 - 2553,
ISSN: 1331-677X
Language:
English
Publication year:
2019
Bibliographic description:
Kubiszewska K.: Banking stability during the economic transformation process in selected countries of the Western Balkans// Economic Research-Ekonomska Istrazivanja -,iss. 32 (2019), s.2532-2553
DOI:
Digital Object Identifier (open in new tab) 10.1080/1331677x.2019.1645714
Bibliography: test
  1. Abazi, A., & Aliu, S. (2015). Financial deepening and economic growth in the Western Balkans, Lund.
  2. Abrudan, C. (2013). Analysis of Romanian economic stability in terms of evolution of the budgetary deficit and other macroeconomic indicators in the period 2005-2012. The Annals of the University of Oradea, 1(2), 13-19.
  3. Acharya, V., Pedersen, L. H., Philippon, T., & Richardson, M. (2017). Measuring systemic risk. The Review of Financial Studies, 30(1), 2-47. doi:10.1093/rfs/hhw088 open in new tab
  4. Agoraki, M. E., Delis, M. D., & Pasiouras, F. (2011). Regulations, competition and bank risk- taking in transition countries. Journal of Financial Stability, 7(1), 38-48. doi:10.1016/j.jfs. 2009.08.002 open in new tab
  5. Aikman, D., Giese, J., Kapadia, S., & McLeay, M. (2018). Targeting financial stability: Macroprudential or monetary policy. Bank of England WP 734, Bank of England. open in new tab
  6. Allen, F., Demirg€ uç-Kunt, A., Klapper, L., & Peria, M. S. M. (2016). The foundations of finan- cial inclusion: Understanding ownership and use of formal accounts. Journal of Financial Intermediation, 27, 1-30.doi:10.1016/j.jfi.2015.12.003 open in new tab
  7. Anginer, D., Demirg€ uç-Kunt, A., & Mare, D. S. (2018). Bank capital, institutional environment and systemic stability. Journal of Financial Stability, 37, 97-106. doi:10.1016/j.jfs.2018.06.001 open in new tab
  8. Åslund, A. (2018). Ten lessons from a quarter of a century of post-communist economic trans- formation. Economics of Transformation, 26(4), 851-862. doi:10.1111/ecot.12165 open in new tab
  9. Balgova, M., Nies, M., & Piekhanov, A. (2016). The economic impact of reducing non-per- forming loans. EBRD Working Paper, 193. doi:10.2139/ssrn.3119677 open in new tab
  10. Barth, J., Lin, C., Lin, P., & Song, F. (2009). Corruption in bank lending to firms: Cross-coun- try micro evidence on the beneficial role of competition and information sharing. Journal of Financial Economics, 91(3), 361-388. doi:10.1016/j.jfineco.2008.04.003 open in new tab
  11. Bartlett, W., & Monastiriotis, V. (2010). South East Europe after the economic crisis: A new dawn or back to business as usual? London, UK: London School of Economics and Political Science: LSE European Institute, 242-251. open in new tab
  12. Beck, T., De Jonghe, O., & Schepens, G. (2013). Bank competition and stability: Cross-country heterogeneity. Journal of Financial Intermediation, 22(2), 218-244. doi:10.1016/j.jfi.2012.07. 001 open in new tab
  13. Back e, P., Egert, B., & Walko, Z. (2017). Credit Growth in Central and Eastern Europe Revisited. Focus, 2(07), 69-77.
  14. Barisitz, S. (2008). Banking Transformation (1989-2006) In Central And Eastern Europe - With Special Reference To Balkans, Oesterreichische Nationalbank. open in new tab
  15. Beck, T., Demirguc-Kunt, A., & Levine, R. (2006). Bank concentration, competition and crisis, first result. Journal of Banking and Finance, 30, 1581-1603. open in new tab
  16. Beckmann, E. (2017). How does foreign currency debt relief affect households' loan demand? Evidence from the OeNB Euro Survey in CESEE. Focus on European Economic Integration, Q1(17), 8-32.
  17. Beckmann, E., Hildebrandt, A., & J€ ager-Gyovai, K. (2015). Current risks in the CESEE residen- tial property market: Evidence from the OENB Euro survey. The National Polish Bank Workshop: Recent Trends in the Real Estate Market and Its Analysis.
  18. Berger, A., & Bouwman, C. (2009). Bank Liquidity Creation. Review of Financial Studies, 22(9), 3779-3837. doi:10.1093/rfs/hhn104 open in new tab
  19. Betz, F., Oprica, S., Peltonen, T. A., & Sarlin, P. (2014). Predicting distress in European banks. Journal of Banking & Finance, 45 (C), 225-241. doi:10.1016/j.jbankfin.2013.11.041 open in new tab
  20. BIS. (2010). Basel III: A Global Regulatory Framework for More Resilient Banks and Banking Systems. open in new tab
  21. Boduszynski, M. P. (2010). Regime change in the Yugoslav successor states: Divergent paths toward a New Europe. Baltimore, US: JHU Press, 66-67.
  22. Bokros, L. (2001). A perspective on financial sector development in the Central and Eastern Europe. In A. Fleming, L. Bokros, & C. Votava, (Eds.), Financial transition in Europe and Central Asia: Challenges of the new decade. Washington: Palgrave Macmillan, a division of Macmillan Publishers Limited. doi:10.1057/9781403907684_2 open in new tab
  23. Bongini, P., Iwanicz-Drozdowska, M., Smaga, P., & Witkowski, B. (2017). Financial Development and Economic Growth: The Role of Foreign-Owned Banks in CESEE Countries. Sustainability, 9(3), 335. doi:10.3390/su9030335 open in new tab
  24. Bruha, J., & Kocenda, E. (2017). Financial stability in Europe: banking and sovereign risk. Centre for Economic Studies and Ifo Institute WP, 6453. doi:10.1016/j.jfs.2018.03.001 open in new tab
  25. Chortareas, G., Magkonis, G., Moschos, D., & Panagiotidis, T. (2015). Financial development and economic activity in advanced and developing open economies: evidence from panel cointegration. Review of Development Economies, 19 (1), 163-177. doi:10.1111/rode.12132 open in new tab
  26. Cole, R. A., & White, L. J. (2012). D ej a Vu all over again: The causes of us commercial bank failures this time around. Journal of Financial Services Research, 42 (1-2). doi:10.1007/ s10693-011-0116-9 open in new tab
  27. Cuaresma, J. C., Fidrmuc, J., & Hake, M. (2014). Demand and supply drivers of foreign cur- rency loans in CEECs: A meta-analysis. Economic Systems, 38, 26-42. doi:10.1016/j.ecosys. 2013.09.001 open in new tab
  28. Cucinelli, D. (2015). The impact of non-performing loans on bank lending behaviour: Evidence from the Italian banking sector. Eurasian Journal of Business and Economics, 8(16), 59-71. doi:10.17015/ejbe.2015.016.04 open in new tab
  29. Dalic, M. (2013). Croatia: A prolonged crisis without recovery. In V. Novotny (Ed.), From reform to growth: Managing the economic crisis in Europe (pp. 67-88). Brussels: Centre for European Studies.
  30. Delis, M. (2009). Competitive conditions in the Central and Eastern European banking sys- tems, MPRA paper. 13890. doi:10.1016/j.omega.2008.09.002 open in new tab
  31. Davcev, L. J., & Hourvouliades, L. N. (2013). Banking concentration in FYROM: Evidence from a country in transition. Procedia Economics and Finance, 5, 222-230. doi:10.1016/ S2212-5671(13)00028-2 open in new tab
  32. Dimi c, M., & Barjaktarovi c, L. (2017). Ownership transformation of the banking sector in see countries. Bankarstvo, 46(1), 84-103. doi:10.5937/bankarstvo1701084d open in new tab
  33. Dreassi, A., Miani, S., Paltrinieri, A., & Sclip, A. (2018). Bank-insurance risk spillovers: Evidence from Europe. The Geneva Papers on Risk and Insurance -Issues and Practice, 43(1), 72-96. doi:10.1057/s41288-017-0049-0 open in new tab
  34. Fang, Y., Iftekhar, H., & Marton, K. (2014). Institutional development and bank stability: Evidence from transition countries. Journal of Banking and Finance, 39, 160-176. doi:10. 1016/j.jbankfin.2013.11.003 open in new tab
  35. Fidanoski, F., Choudhry, M., Davidovi c, M., & Sergi, B. S. (2018). What does affect profitabil- ity of banks in Croatia? Competitiveness Review: An International Business Journal, 28(4), 338-367. doi:10.1108/CR-09-2016-0058 open in new tab
  36. Fu, X., Lin, Y., & Molyneux, F. (2014). Bank competition and financial stability in Asia Pacific. Journal of Banking & Finance, 38, 64-77. doi:10.1016/j.jbankfin.2013.09.012 open in new tab
  37. Fries, S., & Taci, A. (2002). Banking Reform and Development in Transition Economies, EBRD, Working Paper, 72.
  38. Gabrisch, H., Hanzl-Weiss, D., Holzner, M., Landesmann, M., P€ oschl, J., & Vidovic, H. (2016). Improving competitiveness in the Balkan Region -Opportunities and limits, wiiw Research Reports 411, The Vienna Institute for International Economic Studies, wiiw. open in new tab
  39. Gemzik-Salwach, A. (2013). Wpływ kryzysu finans ow publicznych na stabilno s c sektora banko- wego. Nier owno sci Społeczne a Wzrost Gospodarczy, 30, 354-364.
  40. Gillman, M., & Harris, M. (2004). Inflation, Financial Development and Growth in Transition Countries, Monash University WP 23/04. open in new tab
  41. Giustiniani, A., & Ross, K. (2008). Bank competition and efficiency in FYR Macedonia. South- Eastern Europe Journal of Economics, 2, 145-167. open in new tab
  42. Hellmann, T. K., Murdock, K. C., & Stiglitz, J. E. (2000). Liberalization, Moral hazard in bank- ing, and prudential regulation: Are capital requirements enough? American Economic Review, 90(1), 147-165. doi:10.1257/aer.90.1.147 open in new tab
  43. Houston, J. F., Lin, C., Lin, P., & Ma, Y. (2010). Creditor rights, information sharing, and bank risk taking. Journal of Financial Economics, 96(3), 485. doi:10.1016/j.jfineco.2010.02. 008 open in new tab
  44. Ill es, I. (2011). The internal structure of Western Balkans countries. In G. Horv ath, & Z. Hajd u (Eds.), Regional transformation processes in the Western Balkan countries (pp. 73-102). P ecs: Centre for Regional Studies of the Hungarian Academy of Sciences.
  45. Iwanicz-Drozdowska, M., Smaga, P., & Witkowski, B. (2017). Financial development. have post-communist countries converged? Transformation in Business & Economics, 15(2), 389-414. open in new tab
  46. Jaeger, C. C., Haas, A., & T€ opfer, K. (2013). Sustainability, Finance, and a Proposal from China, Institute for Advanced Sustainability Studies, IASS Working Paper December.
  47. Janecki, J. (2017). Pomiar i ocena stabilno sci makroekonomicznej w Polsce. Acta Universitatis Lodziensis. Folia Oeconomica, 2(328), 123-134. doi:10.18778/0208-6018.328.08 open in new tab
  48. Jashari, H., & Elezi, Z. (2014). Employment policy and the labor mobility in the Western Balkans. Academic Journal of Interdisciplinary Studies, 3(6), 333-340. doi:10.5901/ajis.2014. v3n6p333 open in new tab
  49. Jayakumar, M., Pradhan, R. P., Chatterjee, D., Sarangi, A. K., & Dash, S. (2017). Banking com- petition and banking stability in SEM countries: The causal nexus. Advances in Analytics and Applications, 275-297. doi:10.1007/978-981-13-1208-3_21 open in new tab
  50. Juri c, J. (2017). Characteristics of personal consumption in Bosnia and Herzegovina. Dubrovnik International Economic Meeting, 3(1), 586-596. open in new tab
  51. Keren, M., & Ofer, G. (2002). Globalization and the role of foreign banks in economies in tran- sition. Jerusalem, Israel: Hebrew University.
  52. Klomp, J., & de Haan, J. (2014). Bank regulation, the quality of institutions, and banking risk in emerging and developing countries: An empirical analysis. Emerging Markets Finance and Trade, 50(6), 19. doi:10.1080/1540496X.2014.1013874 open in new tab
  53. Kołodko, G. (1993). Kwadratura piȩciokąta. Od załamania gospodarczego do trwałego wzrostu, Poltext, Warsaw.
  54. Kostadinov, A. (2011). Consequences of the global financial crisis on the Macedonian econ- omy. Quarterly of International Sociology Trimestrale di Sociologia Internazionale, XX(1), 89-108.
  55. Kovtun, D., Meyer Cirkel, A., Murgasova, Z., Smith, D., & Tambunlertchai, S. (2014). Boosting Job Growth in the Western Balkans, IMF WP/14/16. doi:10.5089/9781484391037.001 open in new tab
  56. Kubiszewska, K. (2017). Financial comparison of Western Balkan and Baltic Sea states using the CAMEL approach, 36. doi:10.4467/23539496IB.17.002.7450 open in new tab
  57. Kubiszewska, K. (2016). Transformation of the banking sector as an element of economic transformation in South-East Europe. Optimum. Studia Ekonomiczne, 89, 237-251. doi:10. 15290/ose.2017.05.89.17 open in new tab
  58. Kuddo, A. (2013). South East Europe six: A comparative analysis of labor regulations, technical note. Washington: World Bank. open in new tab
  59. Kuki c, L. (2017). Regional development under socialism: evidence from Yugoslavia. Economic History Working Papers, 267/2017. open in new tab
  60. La Porta, R., Lopez-de-Silanes, F., Shleifer, A., & Vishny, R. (1997). Legal determinants of external finance. Journal of Finance, 52, 1131-1150. doi:10.3386/w5879 open in new tab
  61. Laeven, L., & Levine, R. (2009). Bank governance, regulation and risk taking. Journal of Financial Economics, 93(2), 259. doi:10.1016/j.jfineco.2008.09.003 open in new tab
  62. Lyulyov, O., & Shvindina, H. (2017). Stabilization pentagon model: Application in the manage- ment at macro-and micro-levels. Problems and Perspectives in Management, 15(3), 42. doi: 10.21511/ppm.15(3).2017.04 open in new tab
  63. Maggi, B., & Guida, M. (2013). Modelling non-performing loans probability in the commercial banking system: Efficiency and effectiveness related to credit risk in Italy. Journal of Emerging Economies and Islamic Research, 1(3), 269-291. doi:10.21511/ppm.15(3).2017.04 open in new tab
  64. Malina, A., & Mierzwa, D. (2014). The impact of the global crisis on the macroeconomic stabil- ity of the countries of central and Eastern Europe and Germany. International Conference, Knowledge Economy Society, Contemporary Organizations in the Process of Institutional Transformations, Cracow.
  65. Martinez-Miera, D., & Suarez, J. (2014). Bank's endogenous systemic risk taking. CEMFI. open in new tab
  66. Martinez-Miera, D., & Repullo, R. (2010). Does competition reduce the risk of bank failure? Review of Financial Studies, 23(10), 3638-3664. doi:10.1093/rfs/hhq057 open in new tab
  67. Martynova, N., Ratnovski, L., & Vlahu, R. (2016). Bank Profitability and Risk-Taking, IMF WP. 15/249. doi:10.5089/9781513517582.001 open in new tab
  68. Mehl, A., Vespro, C., & Winkler, A. (2005). The Finance-Growth Nexus and Financial Sector Environment: New Evidence from Southeast Europe. paper presented at conference "European Economic Integration: Financial Development, Integration, and Stability in Central, Eastern, and South-Eastern Europe", Vienna, 14-15.11.2005. open in new tab
  69. Mehran, H., & Thakor, A. V. (2011). Bank capital and value in the cross-section. Review of Financial Studies, 24(4), 1019-1067. doi:10.1093/rfs/hhq022 open in new tab
  70. Mester, L. (2017). The nexus of macroprudential supervision, monetary policy, and financial stability. Journal of Financial Stability, 30, 177-180. doi:10.1016/j.jfs.2017.07.003 open in new tab
  71. Nenovski, T. (2012). EMU crisis creates regional groupings: Are Balkan countries challenged by that? MPRA Paper. 42256.
  72. Ozie R bło, M. (2014). Identification of definition and essence of financial stability. Przedsie R biorczo s c i Zarządzanie Wydawnictwo SAN, XV(9)part III, 45-54.
  73. Perotti, E. C., Ratnovski, L., & Vlahu, R. (2011). Capital regulation and tail risk. De Nederlandsche Bank Working Paper 307. doi:10.2139/ssrn.1951899 open in new tab
  74. Pere, E., & Hashorva, A. (2011). Western Balkans' countries in focus of global economic crisis. The Annals of the Stefan Cel Mare, University of Suceava. Fascicle of the Faculty of Economics and Public Administration, 11(1/13), 103-113.
  75. Pham, T., Talavera, O., & Yang, J. (2016). Multimarket competition and profitability: Evidence from Ukrainian banking. https://mpra.ub.uni-muenchen.de/78763/ open in new tab
  76. Qerimi, Q., & Sergi, B. (2012). Unemployment and the Eurozone crisis: The state of social wel- fare in the Balkans. SEER, 15(4), 425-431. doi:10.5771/1435-2869-2012-4-425 open in new tab
  77. Raczkowski, K. (2016). Makroekonomiczne Stabilizatory Procesu Zarządzania Publicznego W Pa nstwach Unii Europejskiej. Przegląd Organizacji, 9/(2016), 58-65. open in new tab
  78. Rapacki, Z. (2003). Sytuacja gospodarcza i poste R p reform rynkowych w krajach postsocjalistycz- nych: Pr oba oceny. Warszawa: Szkoła Gł owna Handlowa -Instytut Gospodarki Swiatowej,.
  79. Rochet, J.-C., & Vives, X. (2004). Coordination failures and the lender of last resort: Was Bagehot right after all? Journal of the European Economic Association, 2(6), 1116-1147. doi: 10.1162/1542476042813850 open in new tab
  80. Rogowski, W., & Mesjasz, C. (2012). Definicje stabilno sci finansowej. In P. Urbanek (Ed.), Nadz or korporacyjny a stabilno s c sektora finansowego. Ł od z: Wydawnictwo Uniwersytetu Ł odzkiego.
  81. Smaga, P. (2013). Istota stabilno sci finansowej. In Studia i Prace, Kolegium Zarządzania i Finans ow (p. 124). Warsaw.
  82. Wagner, W. (2007). The liquidity of bank assets and banking stability. Journal of Banking & Finance, 31, 121-139. doi:10.1016/j.jbankfin.2005.07.019 open in new tab
  83. Walewski, M. (2015). Stabilizacja makroekonomiczna gospodarki rosyjskiej w latach 1997-2012. Studia Oeconomica Posnaniesia, 3(4), 67-78.
  84. Voicu, A. M., Sen, S., & Martinez-Zarzoso, I. (2018). Economic performance of six economies of Central and Eastern Europe, Trade. Development and Structural Change, 183-294. doi:10. 1057/978-1-349-59005-6 open in new tab
  85. Vu cini c, M. (2015). Importance of Macroprudential policy implementation for safeguarding financial stability. Journal of Central Banking Theory and Practice, 3, 79-98. doi:10.1515/ jcbtp-2016-0021 open in new tab
  86. Yarashevich, V., & Karneyeva, Y. (2013). Economic reasons for the break-up of Yugoslavia. Communist and Post-Communist Studies, 46(2), 263-273. doi:10.1016/j.postcomstud.2013.03. 002 open in new tab
  87. Yildirim, S., & Philippatos, G. (2007). Competition and contestability in Central and Eastern European banking markets. Managerial Finance, 33, 195-209. doi:10.1108/ 03074350710718275 open in new tab
  88. _ Zuchowska, D. (2013). Assessment of the Central and Eastern Europe Economies in the Years 2007-2010 based on the model of the macroeconomic stabilization Pentagon, Equilibrium. Equilibrium, 8(4), 49-64. doi:10.12775/EQUIL.2013.026 open in new tab
  89. ORCID Katarzyna Kubiszewska http://orcid.org/0000-0001-7446-5407
Verified by:
Gdańsk University of Technology

seen 17 times

Recommended for you

Meta Tags