IMF paper weighs effect of shifting bank funding in eastern Europe

IMF headquarters in Washington, DC

A working paper published yesterday by the International Monetary Fund (IMF) has examined recent changes in bank funding sources in central, eastern and southeast Europe (CESEE), finding that there are both pros and cons to the shift.

In Bank Funding in Central, Eastern and South Eastern Europe Post Lehman: a "New Normal"?, authors Gregorio Impavido, Heinz Rudolph and Luigi Ruggerone find that banks in CESEE have reduced their reliance on foreign sources of funding. This, they note, has had the

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