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Determinants of foreign currency borrowing in the new member states of the EU /
The paper investigates the determinants of foreign currency borrowing by the private sector in the new member states of the European Union. We find that striking differences in patterns of foreign currency borrowing between countries are explained by the loan-to-deposit ratios, openness, and the int...
| Clasificación: | Libro Electrónico |
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| Autores principales: | , |
| Autor Corporativo: | |
| Formato: | Electrónico eBook |
| Idioma: | Inglés |
| Publicado: |
Washington, D.C. :
International Monetary Fund, European Dept.,
2008.
©2008 |
| Colección: | IMF working paper ;
WP/08/173. |
| Temas: | |
| Acceso en línea: | Texto completo |
| Sumario: | The paper investigates the determinants of foreign currency borrowing by the private sector in the new member states of the European Union. We find that striking differences in patterns of foreign currency borrowing between countries are explained by the loan-to-deposit ratios, openness, and the interest rate differential. Joining the EU appears to have played an important role, by providing direct access to foreign funding, offering hedging opportunities through greater openness, lending credibility to exchange rate regimes, and raising expectations of imminent euro adoption. The empirical evidence suggests that regulatory policies to slow foreign currency borrowing have had only limited success. |
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| Notas: | "July 2008." |
| Descripción Física: | 1 online resource (24 pages) : illustrations |
| Bibliografía: | Includes bibliographical references (pages 19-20). |