In this study a macroeconomic credit risk model for stress testing the South African banking sector was developed. The findings demonstrate that macroeconomic shocks have a large impact on credit losses. However, owing to a high level of current capitalisation, the South African banking sector...

<heading format="display" id="h1" implicit="yes" level="1">Abstract</heading> We extend the literature on sharp reductions in current account deficits by taking into account not only short-term determinants, but also the deviation of net foreign assets from their long-run equilibrium level. First, we analyse the long-term relationship between net foreign assets...

In this paper we look at a number of factors surrounding the sharp increase in lending in Russia. First of all, we discuss the sources of loan growth and factors that have triggered rapid loan growth. Second, we consider the loan portfolio quality, singling out Sberbank and other state banks...

We employ a unique data set containing bank-specific information to explore how foreign bank entry determines credit allocation in emerging markets. We investigate the impact of the mode of foreign entry (greenfield or takeover) on banks' portfolio allocation to borrowers with different degrees...

The current financial turmoil raises concerns about supportiveness of foreign banks from Western European countries for their Central and Eastern European subsidiaries. Foreign bank presence dominates banking business in almost all countries in the region, which would make their withdrawal very...

Using data for 265 banks in the Central and Eastern European Countries for the period of 1995-2003, this paper analyses the differences in profitability between domestic and foreign banks. We show that foreign banks, especially greenfield institutions, earn higher profits than domestic banks....

As a number of European banks was touched by the American subprime crisis, there is a new urgency to consider the pros and cons of the ongoing globalization of the banking sector. In this letter, we aim to describe foreign exposures of French banks and compare them to the situation in other...