摘要:We study whether foreign and domestic banks in Central and Eastern Europe react differently
to business cycle conditions and host country banking crises. Our unique panel dataset
comprises data of more than 250 banks for the period 1993-2000, with detailed information
on bank ownership and mode of entry. We show that during crisis periods (former) domestic
banks contracted their credit base, whereas greenfield foreign banks did not. Also, home
country conditions matter for foreign bank growth, as there is a significant negative
relationship between home country economic growth and host country credit by greenfields.
Finally, foreign bank subsidiary’s credit growth is influenced by the health of the parent bank.