CASE has been selected to carry out a 7 month study on “The effects of the global crisis on the financial sector in candidate and potential candidate countries” for DG ECFIN.

The main objective of the study is to increase the understanding of how the international economic and financial crisis affects the financial sectors of the EU candidate and potential candidate countries by providing a relatively simple, non-technical and user-friendly toolkit for enhanced monitoring.  Apart from a region-wide comparative analysis, the project will include three country case studies—on Turkey, Macedonia and Serbia.  Reviewing the structure and situation of the financial sector with a primary focus on the banking sector, the study will examine the common financial sector trends in the region; for example, financial deepening, consolidation, and foreign and private ownership.  It will provide a comparison of financial stability indicators with New Member States in Central and Eastern Europe, and outline the main possible channels of crisis transmission to the financial sectors of the candidate and potential candidate countries.  The study will also assess policy responses by domestic authorities to address risks and vulnerabilities of the financial sector and to strengthen its resilience. 

The findings of the research will enable the Commission services to improve and enhance its regular monitoring of the impact of the crisis on the domestic financial sectors. The CASE team carrying out this project is led by CASE Fellow Marianne Schulze-Ghattas.

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