A Study On The Growth Of Banks In Central And Eastern Europe And The Transitional Countries Of The

In recent years, with the promotion of financial integration, the concerns over the stability of banks in developing countries are increasing. Some scholars hold that the entry of foreign banks can obviously improve the performance of banks in host country; others think that foreign banks will massively withdraw the capitals in financial crises and leads to crisis infection.Since 1990 s, the transition countries implemented financial liberalization reform,countries in Central & Eastern Europe and the Commonwealth of the Independent States chose different ways to reform banks, and it then led to different levels of banking industry and opening up. On the basis of the fact, the thesis researches on the domestic credits growth of 14 transition countries from 2001 to 2014(including 10 countries from Central& Eastern Europe, 3 countries from the Commonwealth of the Independent States), and adopts panel analysis to comprehensively investigate the influence on a country’s bank credit growth from banking system reform of transition countries, the entry of foreign banks and the economic crisis. The research finds that the extravagant rate of foreign bank occupation cannot guarantee the steady growth of credits, what’s worse; it will become a risk transmission channel in an economic crisis. Effective reform and perfect system are beneficial to the stability of credits in transition countries’ banks; domestic currency policy still greatly influences the scale of bank credits in transition countries.