Foreign banks own a large share of Romanian banking system and proved to be a direct contagion channel for external financial turbulences into the Romanian financial system since September 2008. From the financial stability point of view, liquidity risk emerged as a major source of turmoil for...

This Occasional Paper reviews financial stability challenges in countries preparing for EU membership with a candidate country status, i.e. Croatia (planned to accede to the EU on 1 July 2013), Iceland, the former Yugoslav Republic of Macedonia, Montenegro and Turkey. It follows a...

The study aims to analyze contagion risk from euro area money market to the Romanian one since the onset of global financial crisis (October 2008). Most banks in Romania are owned by financial institutions located into euro area, resulting in a strong connection between the two banking systems....