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Political risk, crisis and foreign-owned banks in New Member states

Gabor, Daniela; Kudrna, Zdenek


Zdenek Kudrna


The financial crisis renewed attention to risks disregarded during boom years, including political risks stemming from transnational banking within the EU. The need to distribute crisis-related losses prompted authorities in Hungary, Austria, Romania and Latvia to consider unilateral policies that seemed unacceptable before the crisis and that dramatically increased political risks associated with foreign direct investments into banking. Although, ad hoc policy interventions by EBRD, IMF and European Commission persuaded member state authorities to reconsider their policies in the light of their impact on other countries, these cases demonstrate that the EU regulatory regime does not fully constrain political risks.


Gabor, D., & Kudrna, Z. (2012). Political risk, crisis and foreign-owned banks in New Member states. Europe-Asia Studies, 65(3), 548-566.

Journal Article Type Article
Publication Date Jan 1, 2012
Journal Europe Asia Studies
Print ISSN 0966-8136
Publisher Taylor & Francis (Routledge)
Peer Reviewed Peer Reviewed
Volume 65
Issue 3
Pages 548-566
Keywords political risk, crisis, foreign-owned banks, New Member states
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