The impact of the global economic and financial crisis on central, eastern and south-eastern Europe: A stock-taking exercise

The paper first reviews the main drivers of the growth and real convergence process in central, eastern and south-eastern Europe (CESEE) since 2000 and assesses the key macro-financial strengths and vulnerabilities of the region at the beginning of the global economic and financial crisis. The main part of the paper reviews financial and real economic developments in these countries since the crisis started to impact the CESEE region. The paper finds that developments have been rather heterogeneous in the region. CESEE countries with the largest economic imbalances tended to be most affected. National and international support measures appear to have helped to stabilise financial markets, and parent banks of foreign bank subsidiaries in CESEE were committed to sustaining their exposure to the region. The degree to which CESEE governments were able to use policy instruments to counter the real effects of the crisis is rather heterogeneous, depending inter alia on the exchange rate regime in place and the initial fiscal positions. JEL Classification: E52, E58, E44central, eastern and south-eastern Europe, financial crisis, vulnerability indicators

The impact of the global economic and financial crisis on central, eastern and south-eastern Europe: A stock-taking exercise

The paper first reviews the main drivers of the growth and real convergence process in central, eastern and south-eastern Europe (CESEE) since 2000 and assesses the key macro-financial strengths and vulnerabilities of the region at the beginning of the global economic and financial crisis. The main part of the paper reviews financial and real economic developments in these countries since the crisis started to impact the CESEE region. The paper finds that developments have been rather heterogeneous in the region. CESEE countries with the largest economic imbalances tended to be most affected. National and international support measures appear to have helped to stabilise financial markets, and parent banks of foreign bank subsidiaries in CESEE were committed to sustaining their exposure to the region. The degree to which CESEE governments were able to use policy instruments to counter the real effects of the crisis is rather heterogeneous, depending inter alia on the exchange rate regime in place and the initial fiscal positions

Contagion and Spillovers: New Insights from the Crisis

On February 12, 2010, SUERF, the Oesterreichische Nationalbank and the Bankwissenschaftliche Gesellschaft continued their established tradition of jointly organised conferences. As evidenced also by the 115 conference participants, this year's subject of "Contagion and Spillovers – New Insights from the Crisis" turned out to be particularly topical, as first lessons from the financial crisis and global recession were being drawn, while concerns about Greece's government debt problems were threatening to spread to other countries within the euro area, with potential negative repercussions for the euro area as a whole being feared by observers

Preserving Macrofinancial Stability in Serbia: Past Legacies, Present Dilemmas and Future Challenges

In the course of the boom years from 2004 to 2008, Serbia accumulated sizeable macrofinancial imbalances, which made the country vulnerable to external shocks during the global crisis and rendered the process of crisis management more complex. As these vulnerabilities materialized, Serbia had to take recourse to international support which helped stabilize the country’s macrofinancial conditions. Some macrofinancial risks prevail, however, mainly with regard to fiscal and external sustainability. At the same time, financial stability concerns are mitigated by the banking system’s high shock-absorption capacities, the strategically oriented presence of foreign banks and vigilant central bank action. A major future challenge will be to avoid a renewed rise in financial and external vulnerabilities. This calls for a prudent economic policy mix and increased efforts toward structural reformfinancial stability, banking sector, economic and financial crisis

Macrofinancial Stability in Croatia in the Wake of the Global Crisis: Risks and Policy Responses

After a long-lasting boom period, the global crisis put the resilience of Croatia’s economic and financial system to a severe test. The country has mastered this test so far. To some extent, the crisis also altered the country’s macrofinancial risk profile, although – against the backdrop of a high (and increasing) degree of currency substitution – credit risk continues to represent the main challenge to financial stability, in particular as bank clients’ rising debt-servicing problems started to translate into deteriorating credit quality. However, the banking sector’s shock-absorbing capacity – as indicated by still relatively high profitability and capitalization levels – the strategically-oriented presence of foreign banks and vigilant central bank measures were key in cushioning the spillovers of the global crisis and in alleviating vulnerabilities.Financial stability, banking sector, financial crisis

Bank Governance and Financial Stability in CESEE: A Review of the Literature

This article explores the interrelationship between bank governance and financial stability in general and in the ten Central, Eastern and Southeastern European EU Member States (CESEE MS) in particular. Agency theory is used to illustrate that banks are engaged in multiple agency relationships. Within a conceptual framework, five main dimensions of bank governance are identified and analyzed, namely internal, external, corporate, institutional and international governance. Based on the pertinent literature, we subsequently review the agency problems the CESEE MS faced in their banking sectors on their way to installing efficient and sound banking systems in the 1990s. Their experience holds important lessons for the completion of banking reform in less advanced transition economies. Most importantly, banking sector restructuring should go hand in hand with a redesign of the incentive structures for all the relevant actors in the system. This seems to be a prerequisite for achieving and maintaining financial stability and improving the efficiency of capital allocation and economic growth prospects. Overall, the CESEE MS experience also provides useful insights for dealing with the ramifications of the current global financial crisis.Governance, financial stability, transition economies

Croatia: Coping with Rapid Financial Deepening

The Croatian banking sector underwent sweeping structural changes in the late 1990s and has remained relatively stable and profitable since then. Driven by brisk credit growth, financial deepening has continued rapidly in recent years, with the level of bank intermediation now being among the highest in Central, Eastern and Southeastern Europe. With regard to financial stability, relatively high credit and foreign exchange risks would appear to constitute the main challenges. However, the most recent slowdown in domestic credit growth and the sector’s relatively high shock-absorbing capacities, as indicated by quite high profitability and capitalization levels and the strategically oriented presence of foreign banks, help mitigate risk concerns. Yet, the increasing debt burden of both households and corporates requires careful monitoring.

Gondolatok a Down-szindróma szűréséről = Meditation about the screening of Down syndrome

A szerző röviden összefoglalja a Down-szindróma fontosabb klinikai tüneteit és a megelőzés lehetőségeit. Ismerteti a szűrésre használt módszereket (biokémiai markerek, magzati ultrahangjelek) és a legfontosabb szűrőteszteket (kombinált teszt, integrált teszt). Ezt követően a Down-szűrés hazai helyzetét elemzi, és hangsúlyozza, hogy a 35 év feletti anyai életkor, továbbá az alacsonyabb szérum-alfa-fetoprotein-szint önmagában nem lehet az amniocentesis indikációja. Elsőrendű feladat a betegség felismerési arányának növelése és az amniocentesisek számának csökkentése. A jelenleg ismert leghatékonyabb szűrőmódszer az első trimeszteri kombinált teszt. Ennek országos bevezetéséhez az ultrahang-diagnosztika személyi és tárgyi feltételeinek javításán és a megfelelő finanszírozás megoldásán át vezethet az út. | The more important clinical manifestations and the opportunities of screening of Down syndrome are shortly summerized in this paper. The methods used for screening (biochemical markers, fetal ultrasound signs) and the most important screening tests (combined screening, integrated screening) are shown. Afterwards the author analyses the situation of screening in Hungary, and he underlines that the maternal age over 35 years, as well as the lower level of alfa-fetoprotein in the serum cannot be the only indication of amniocentesis. The first aim should be to increase the detection rate of disease diagnostics and to decrease the number of amniocenteses. Nowadays the most effective screening method is the combined test in the first trimester. The nationwide introduction of this method requires the improvement of personal and material environment of ultrasound diagnostics and the corresponding financial background