Rapid Credit Growth in Central and Eastern Europe

CALIN ARCALEAN Department of Economics, Indiana University, USA PETER BACKÉ Head of Unit, Foreign Research Division, Oesterreichische National Bank, Austria PIOTR BEDNARSKI National Bank of Poland, Poland FRÉDERIC BOISSAY European Central Bank, Germany OSCAR CALVO-GONZALEZ Principal Economist, EU Neighbouring Regions Division, European Central Bank, Germany CHRISTOPH DUENWALD Senior Economist, European Department, International Monetary Fund BALÁZS ÉGERT Oesterreichische National Bank, Austria BYSTRIK GALLO Banking Specialist, Monetary Policy Department, National Bank of Slovakia, Slovak Republic NIKOLAY GUEORGUIEV Senior Economist, European Department, International Monetary Fund PAUL HILBERS Advisor, European Department, International Monetary Fund MICHAEL HÖLLERER Austrian Financial Market Authority (FMA), Austria MATS JOSEFSSON Senior Financial Sector Expert, Monetary and Capital Markets Department, International Monetary Fund NIKOLAOS KAMBEROGLOU Head of Statistics and Analysis Division, Statistical Department, Bank of Greece, Greece TOMASZ KOZLUK European Central Bank, Germany MAROJE LANG Head, Monetary Analysis Division, Research Department, Croatian National Bank, Croatia RAOUL LÄTTEMÄE Head, Monetary Policy Unit, Economics Department, EEST 1 Pank (Bank of Estonia), Estonia MAREK LICÁK Banking Specialist, Banking Supervision, Risk Management, National Bank of Slovakia, Slovak Republic STOYAN MANOLOV Director, Off-Site Supervision & Analysis, Bank Supervision Department, Bulgarian National Bank, Bulgaria CARMEN MARTINEZ-CARRASCAL Economist, Monetary and Financial Studies Department, Research Department, Banco de España, Spain DUBRAVKO MIHALJEK Senior Economist, Bank for International Settlements, Switzerland CSABA MÓRÉ Senior Economist, Financial Stability, Magyar Nemzeti Bank, Hungary MÁRTON NAGY Deputy Head, Macroprudential Analysis Division, Financial Stability Department, The Central Bank of Hungary, Hungary JACEK OSINSKI Director of Financial System Department, National Bank of Poland, Republic of Poland CEYLA PAZARBASIOGLU Division Chief, Emerging Markets Surveillance Division, Monetary and Capital Markets Department, International Monetary Fund VESELKA PETKOVA National Bank of Bulgaria, Bulgaria CHRISTIAN POPA Deputy Governor, National Bank of Romania, Romania TOMAS RAMANAUSKAS Macroeconomics and Forecasting Division, Economics Department, Lietuvos Bankas (Bank of Lithuania), Lithuania NUNO RIBEIRO Head of Financial Stability Division, Research Department, Banco De Portugal, Portugal ULDIS RUTKASTE Chief Economist, Monetary Policy Department, Macroeconomic Analysis Division, Bank of Latvia, Latvia ANDREA SCHAECHTER Senior Economist, European Department, International Monetary Fund DARIUSZ STARNOWSKI National Bank of Poland, Poland NIKOLAOS STAVRIANOU Bank Examiner, Supervision of Credit and Related Financial Institutions Department, Bank of Greece, Greece PIOTR SZPUNAR Deputy Director, Macroeconomic Analyses Department, National Bank of Poland, Republic of Poland LINDA VAN GOOR The Netherlands Bank, The Netherlands ADRIAN VAN RIXTEL Principal Economist, Capital Markets and Financial Structure Division, European Central Bank, Germany ADALBERT WINKLER Deputy Head of Division, EU Neighbouring Regions Division, European Central Bank, Germany KARIN ZARTL Member of the Secretariat, Committee of European Banking Supervisors, UK TINA ZUMER Economist, EU Countries Division, European Central Bank, Germany.

PART I: Assessing and Managing Rapid Credit Growth in Central and Eastern Europe; C.Enoch The Causes and Nature of Rapid Growth of Bank Credit in the Central, Eastern, and South Eastern European Countries; C.Arcalean, O.Calvo-Gonzalez, C.Móré, A.van Rixtel, A.Winkler & T.Zumer Using Fundamentals to Identify Episodes of 'Excessive' Credit Growth in Central and Eastern Europe; F.Boissay, O.Calvo-Gonzalez & T.Kozluk Fast Credit Expansion in Central and Eastern Europe: Catching Up, Sustainable Financial Deepening, or Bubble?; P.Backé, B.Égert & T.Zumer Analysis of and Policy Responses to Rapid Credit Growth; P.Hilbers, I.Ötker-Robe & C.Pazarbasioglu Rapid Credit Growth - The Role of Supervisors; M.Josefsson PART II: Assessing and Managing Rapid Credit Growth - Country Experiences Credit Growth Slow Down: The Experience of Bulgaria; V.Petkova & S.Manolov Croatian Experience with Rapid Credit Growth; M.Lang Estonia's Experience with Rapid Credit Growth; R.Lättemäe Latvia's Experience with Rapid Credit Growth; U.Rutkaste Assessment of Credit Growth in Lithuania; T.Ramanauskas Poland's Experiences with Rapid Credit Growth - The 1996-1997 Episode; P.Szpunar Growth of Non-Government Credit and Macroeconomic Developments: The Case of Romania; C.Popa Slovakia: Credit Growth in the Household Sector and Response to the Related Risks; M.Licák Too Much of a Good Thing? Credit Booms in Transition Economies: The Cases of Bulgaria, Romania, and Ukraine; C.Duenwald, N.Gueorguiev & A.Schaechter PART III: Regional Dimensions of Rapid Credit Growth and Perspectives from Euro Convergence Countries The Role of Housing Markets and Foreign Owned Banks in the Credit Expansion in Central and Eastern Europe; D.Mihaljek Regional Dimensions of Dealing with Rapid Credit Growth: Perspectives from Greece, 1998-2005; N.Kamberoglou & N.Stavrianou Debt Growth: Factors, Institutional Issues and Implications - The Portuguese Case; N.Ribeiro The Growth of Private Sector Debt in Spain: Causes and Consequences; C.Martinez-Carrascal PART IV: Cross-Border Dimension: Supervisory Coordination Between Bank Supervisors Cross-Border Supervisory Cooperation; K.Zartl Home Country Perspective: The Role of Cross Border Supervisory Coordination when Dealing with Rapid Credit Growth in Emerging Countries - The Case for Cooperating Supervisors; L.van Goor Home and Host Supervisors' Relations - A Host Supervisor's Perspective; P.Bednarski & D.Starnowski PART V: Concluding Remarks Lessons from Country Experiences with Rapid Credit Growth in Europe and Policy Implications; C.Enoch & I.Ötker-Robe