This policy brief analyzes whether the exposure to the CEE10 region is a risk for parent banks. Simultaneously, risks … for the CEE10 countries implied by the strong presence of foreign-owned banks as well as possible feedback loops are …

boundaries. The estimations identify a significant premium in the range 60-170 basis points on issued debt that banks have paid … to investors if they are located in Spain, Ireland or Italy. . Portuguese and Greek banks paid a premium up to 170 … respectively 200 basis points due to the impact of sovereign risk on market fragmentation. The premium for banks in other core …

translated into more ample credit creation in support of economic growth. The continued necessary adjustment of bank balance … credit demand. Weakness in bank lending calls for more efforts to foster alternative sources of finance. Other challenges …