Publication
Sep 2002
This paper shows that countries with weak banking systems and weak fiscal institutions might benefit from the presence of foreign banks. It argues that foreign banks not only constitute a commitment and transparency device but also reduce the probability of self-fulfilling speculative attacks. It illustrates this reasoning with the experience of countries from Central and Eastern Europe whose banking systems are dominated by foreign banks.
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English (PDF, 23 pages, 498 KB) |
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Author | Daniel Gros |
Series | CEPS Working Documents |
Issue | 185 |
Publisher | Centre for European Policy Studies (CEPS) |
Copyright | © 2002 Centre for European Policy Studies (CEPS) |