LA PRÉSENCE DE BANQUES ÉTRANGÈRES EN EUROPE DE L'EST QUELS RISQUES FINANCIERS?

The 2008-2009 financial crisis, which affected banks in the European Union, draws attention to how vulnerable eastern and central European countries are to the flow of capital from western European banks and to balance-of-payment crises. These countries face two sorts of financial risks, which have increased since 2000: first of all, the direct financial exposure between western European banks and these countries; and secondly, the risk of regional contagion owing to spillover effects and a common creditor channel, as parent banks pass their problems on to regional subsidiaries. Estonia runs both these risks whereas Latvia, Lithuania, Romania, Bulgaria and Hungary are the most exposed to foreign debt-holders. Though apparently less exposed to the direct risk than to the indirect one, the Czech Republic and Slovakia are not protected from banking problems and could fall victim to regional contagion. [ABSTRACT FROM AUTHOR]