Book contents
- Frontmatter
- Contents
- List of figures
- List of tables
- Notes on the contributors
- Acknowledgments
- Introduction
- 1 New Member States: macroeconomic outlook and forecasts
- 2 The asymmetric impact of enlargement on old and new Member States: a general equilibrium approach
- 3 Changes in the spatial distribution patterns of European regional activity: the enlargements of the mid-1980s and 2004
- 4 Forecasting macroeconomic variables for the new Member States
- 5 The cyclical experience of the new Member States
- 6 Demand and supply shocks in the new Member States
- 7 Monetary transmission in the new Member States
- 8 Promoting fiscal restraint in three Central European Member States
- 9 Current account dynamics in the new Member States
- 10 Challenges to banking sector stability in selected new Member States
- 11 Infrastructure investments as a tool for regional development policy: lessons from the Spanish evidence
- 12 TFP, costs and public infrastructure: an equivocal relationship
- 13 Regional policies after the EU enlargement
- Index
- References
10 - Challenges to banking sector stability in selected new Member States
Published online by Cambridge University Press: 22 September 2009
- Frontmatter
- Contents
- List of figures
- List of tables
- Notes on the contributors
- Acknowledgments
- Introduction
- 1 New Member States: macroeconomic outlook and forecasts
- 2 The asymmetric impact of enlargement on old and new Member States: a general equilibrium approach
- 3 Changes in the spatial distribution patterns of European regional activity: the enlargements of the mid-1980s and 2004
- 4 Forecasting macroeconomic variables for the new Member States
- 5 The cyclical experience of the new Member States
- 6 Demand and supply shocks in the new Member States
- 7 Monetary transmission in the new Member States
- 8 Promoting fiscal restraint in three Central European Member States
- 9 Current account dynamics in the new Member States
- 10 Challenges to banking sector stability in selected new Member States
- 11 Infrastructure investments as a tool for regional development policy: lessons from the Spanish evidence
- 12 TFP, costs and public infrastructure: an equivocal relationship
- 13 Regional policies after the EU enlargement
- Index
- References
Summary
Introduction
Following their accession to the European Union (EU) in May 2004, the eight Central and Eastern European countries (CEEC) of the first wave, having been judged to have converged sufficiently with the fifteen existing members of the Union with regard to the political and economic criteria established in Copenhagen, are continuing to undergo structural and institutional change. Moreover, they are committed to entering a process leading to the adoption of the common currency, the euro. The EU has set a target date of 2007 for the accession of two additional countries in the region, Bulgaria and Romania, which are in the process of closing the final negotiations on chapters of the acquis communautaire that will define the path by which they too will harmonise their institutions. All of these countries have already made dramatic strides in improving the stability and efficiency of their banking sectors as well as in eliminating restrictions on capital flows. However, these processes are not complete and further progress along these lines, including such phenomena as increased competition in the banking sector and more substantial flows of short-term capital, in and of itself has the potential to increase the risks of instability in the banking sectors of the individual new Member States. Moreover, there may well be developments in macroeconomic trends, exchange rates and direction and composition of financial flows due to accession to the EU and preparation for eventual accession to the Euro area that could exacerbate these risks.
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- Publisher: Cambridge University PressPrint publication year: 2006
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