Angebot und Nachfrage nach Fremdwährungskrediten in Mittel- und Osteuropa

Wirtschaftsuniversität Wien

Central and Eastern European Countries (CEECs) face high volumes of foreign currency loans which recently lead to first concerns over increasing risks. Financial market research has so far neglected this development. The aim of this research project is to analyze the factors determining the demand and the supply for foreign currency loans in order to better understand the mechanisms causing the high level of foreign currency debt. Risks for borrowers, banks and the whole economy will be assessed. Do certain countries need to improve their portfolio (of foreign versus domestic currency holdings) to reduce their foreign indebtedness and further increase stability? To test the hypothesis, this project will combine a qualitative review of academic literature with new, detailed empirical evidence for currency substitution in 13 CEECs. The contribution to research in the field of financial markets will be to (1) analyze the supply and the demand for foreign currency loans, assess the risks and to (2) establish a new, detailed database on foreign currency holdings that will also provide a solid basis for future research.