This book represents the latest developments and policy debate on a very current issue: the rapid growth of banking sector credit to the private sector, which continues to occupy the minds of academics and policymakers alike in many Central and Eastern European (CEE) countries. The contributions, from the representatives of international organizations and monetary and supervisory authorities of a number of Western and CEE countries, discuss ways to assess and respond to excessive credit growth. Case studies represent the challenges faced by policymakers in dealing with rapid credit growth, providing useful lessons for other countries experiencing a similar phenomenon.

CONTENTS:

PART I. Assessing and Managing Rapid Credit Growth

1. Credit growth in Central and Eastern Europe; C.Enoch
2. The Causes and Nature of Rapid Growth of Bank Credit in the Central, Eastern, and South Eastern European Countries;C.Arcalean, O.Calvo-Gonzalez, C.Móré, A.van Rixtel, A.Winkler & T.Zumer
3. Using Fundamentals to Identify Episodes of 'Excessive' Credit Growth in Central and Eastern Europe; F.Boissay, O.Calvo-Gonzalez & T.Kozluk
4. Fast Credit Expansion in Central and Eastern Europe: Catching Up, Sustainable Financial Deepening, or Bubble?; P.Backé, B.Égert & T.Zumer
5. Analysis of and Policy Responses to Rapid Credit Growth; P.Hilbers, I.Ötker-Robe & C.Pazarbasioglu
6. Rapid Credit Growth - The Role of Supervisors; M.Josefsson

PART II: Assessing and Managing Rapid Credit Growth - Country Experiences
7. Credit Growth Slowdown: The Experience of Bulgaria; V.Petkova & S.Manolov
8. The Croatian Experience with Rapid Credit Growth; M.Lang
9. Estonia's Experience with Rapid Credit Growth; R.Lättemäe
10. Latvia's Experience with Rapid Credit Growth; U.Rutkaste
11. Assessment of Credit Growth in Lithuania; T.Ramanauskas
12. Poland's Experiences with Rapid Credit Growth - The 1996-1997 Episode; P.Szpunar
13. Fast Credit Growth and Policy Response: The Case of Romania; C.Popa
14. Slovakia: Credit Growth in the Household Sector and Response to the Related Risks; M.Licák
15. Too Much of a Good Thing? Credit Booms in Transition Economies: The Cases of Bulgaria, Romania, and Ukraine; C.Duenwald, N.Gueorguiev & A.Schaechter

PART III: Regional Dimensions of Rapid Credit Growth and Perspectives from Euro Convergence Countries
16. The Role of Housing Markets and Foreign-owned Banks in the Credit Expansion in Central and Eastern Europe; D.Mihaljek
17. Regional Dimensions of Dealing with Rapid Credit Growth: Perspectives from Greece, 1998-2005; N.Kamberoglou & N.Stavrianou
18. Debt Growth: Factors, Institutional Issues and Implications - The Portuguese Case; N.Ribeiro
19. The Growth of Private Sector Debt in Spain: Causes and Consequences; C.Martinez-Carrascal

PART IV: Cross-Border Dimension: Supervisory Coordination Between Bank Supervisors
20. Cross-Border Supervisory Cooperation; K.Zartl
21. The Role of Cross Border Supervisory Coordination when Dealing with Rapid Credit Growth in Emerging Countries - Home Country Perspective; L.van Goor
22. Home and Host Supervisors' Relations - A Host Supervisor's Perspective; P.Bednarski & D.Starnowski

PART V: Concluding Remarks
23. Lessons from Country Experiences with Rapid Credit Growth in Europe and Policy Implications; C.Enoch & I.Ötker-Robe