We would like to invite you to the Empirical Seminar series organized by the Institute of Economic Research, Slovak Academy of Sciences, Šancová 56 that will be held in hybrid form (online and at the library of the Institute of Economic Research, Slovak Academy of Sciences). The seminar will take place on February 11th, 2026 at 10.00 (CET).
The speaker will be Peter Albrecht (Faculty of Business and Economics, Mendel University in Brno, Czech Republic).
The topic of the seminar is: Lending Activity Patterns in CEE: Evidence from Ownership Structure Effects
Authors: Svatopluk Kapounek, Evžen Kočenda, Peter Albrecht, Daniel Pastorek a Martin Stachoň
Abstract:
Using a panel dataset of over 450 banks across fifteen CEE countries from 1994 to 2022, we identify systematic differences in lending activities between foreign- and domestically owned banks. Our results indicate that foreign ownership is associated with a modest but statistically significant increase in lending, which is supported by higher net interest margins. Foreign banks in CEE, while benefiting from access to cheaper liquidity through their parent institutions in Western Europe, exhibit lending behavior that is more vulnerable to operational inefficiencies and external shocks. In contrast, domestic banks are more constrained by liquidity and capitalization, with higher equity and liquid asset ratios significantly reducing their lending capacity. Our findings underscore the significance of foreign ownership in influencing the transmission of financial characteristics into lending behavior, and emphasize the need to consider this factor when evaluating financial system stability. A direct message applies to the specific institutional features of central banks due to the structural trade-offs between cross-border integration and domestic autonomy within post-transition banking systems.
The seminar will be co-chaired by Filip Ostrihoň.
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