Financial Development, Integration and Stability

Edited by Klaus Liebscher, Governor, Oesterreichische Nationalbank, Josef Christl, Managing Director, Macro-Consult e. U., Peter Mooslechner, formerly Oesterreichische Nationalbank and Doris Ritzberger-Grünwald, Director, Oesterreichische Nationalbank, Austria

• Contents:PrefaceKlaus Liebscher, Josef Christl, Peter Mooslechner and Doris Ritzberger-GrünwaldPART I: ACHIEVEMENTS AND CHALLENGES IN EUROPEAN FINANCIAL INTEGRATION1. Financial Integration and Financial Deepening in the EU: Mind the GapKlaus Liebscher2. Benefits and Risks of Financial IntegrationCesare Calari3. Financial Globalization, Corporate Governance and Eastern EuropeRené M. StulzPART II: EUROPEAN FINANCIAL STRUCTURES YESTERDAY, TODAY AND TOMORROW4. Does the Financial Sector Need Europe?Gertrude Tumpel-Gugerell5. The Central and Eastern European Financial Sector: Current State and ProspectsIrmfried Schwimann and Kristin Vandenbergen6. CEEC Financial Sector Issues and Macroeconomic Policy: A Perspective from Across CountriesCristian Popa7. The Financial System of the EU-25Franklin Allen, Laura Bartiloro and Oskar Kowalewski8. Meeting the Need for a Regulatory Framework for EU Financial MarketsAlexandre LamfalussyPART III: THE EUROPEAN FINANCIAL SYSTEM AS AN ECONOMIC DRIVING FORCE9. Finance and Growth: The Legacy of Schumpeter to be Rediscovered?Peter Mooslechner10. The Impact of the Euro on Investment: Sectoral EvidenceTomas Dvorak11. Importance of Financial Sectors for Growth in Accession CountriesGerhard Fink, Peter Haiss and Goran Vukšić12. Financial Sector Development in South-Eastern Europe: Quality MattersArnaud Mehl, Cristina Vespro and Adalbert WinklerPART IV: CREDIT GROWTH IN CENTRAL AND EASTERN EUROPE: A CAUSE FOR CONCERN?13. Happy, Sad and Open Endings: A Comparison of Credit Growth in CEECs with Past Experiences and Ongoing Developments in Austria, Finland and SpainDoris Ritzberger-Grünwald14. Is Lending in Central and Eastern Europe Developing Too Fast?Frédéric Boissay, Oscar Calvo-Gonzalez and Tomasz Koźluk15. Too Much of a Good Thing? Credit Booms in Transition Economies: The Cases of Bulgaria, Romania and Ukraine Christoph Duenwald, Nikolay Gueorguiev and Andrea Schaechter 16. The ‘New Europe’ Household Lending Market Fabrizio Coricelli, Fabio Mucci and Debora RevoltellaPART V: FOREIGN BANK ENTRY AND CORPORATE OWNERSHIP STRUCTURES: IMPLICATIONS FOR BUSINESS, COMPETITION AND PROFITABILITY 17. Foreign Banks in Eastern Europe: Mode of Entry and Effects on Bank Interest RatesSophie Claeys and Christa Hainz18. Ownership Structures and Investment in Transition EconomiesDennis C. Mueller and Evgeni Peev19. Ownership Competition in the European Transition Arena: Towards a Viable Restructuring?Diana Pop and Julien Le MauxPART VI: BANKING AND FINANCIAL STABILITY: POTENTIAL PITFALLS20. Deposit Interest Rates, Asset Risk and Bank Failure in CroatiaEvan Kraft and Tomislav Galac21. Investigating the Early Signals of Banking Sector Vulnerabilities in Central and East European Emerging MarketsKadri Männasoo and David G. Mayes22. Financial Integration Through the Interbank Market: Stability and Welfare ImplicationsFalko Fecht and Hans Peter Grüner23. Contagion Risk in Financial NetworksAna Babus24. Does Corporate Mobility Enhance Corporate Governance?Zsuzsanna Fluck and Colin MayerPART VII: CAPITAL MARKET INTEGRATION AND CAPITAL MOBILITY IN NEW EU MEMBER STATES25. Equity Market Integration of New EU Member StatesLorenzo Cappiello, Bruno Gérard, Arjan Kadareja and Simone Manganelli26. The Integration of Czech, Hungarian and Polish Bond Markets with the Euro Area Bond Market – A Déjà-vu of the Club-Med Convergence Plays?Thomas Reininger and Zoltan Walko27. International Capital Mobility and Current Account Targeting in Central and Eastern European CountriesMatthias KöhlerPART VIII: COMPLEMENTING THE ACADEMIC VIEW: PERSPECTIVES FROM KEY FINANCIAL MARKET PLAYERS28. Financial Institutions as a Driving Force of IntegrationJosef Christl29. UniCredit's Strategy in Central and Eastern EuropeAlessandro Profumo30. Banking ConsolidationReinhard Ortner31. Building a Central European Exchange AllianceStefan ZopotockyIndex

'Financial industries in central, eastern and south-eastern Europe have undergone dramatic changes over the past decade. Foreign direct investment contributed to the development of market-oriented banking and financial systems able to support the rapid pace of economic growth in these countries. Policymakers, academics and private sector analysts have contributed to this volume with their stimulating insights on a broad range of issues, from recent credit booms to the cross-border integration of banking and capital markets. Anyone who wants to understand how finance, growth and financial stability interact in transition economies should read this book.'