Assessing The Risks To The Banking Sector

March 2008
Emerging Europe Monitor: Central Europe & Baltic States;Mar2008, Vol. 15 Issue 3, p10
Country Report
This article presents an economic outlook for Estonia for 2008. There is a risk that the quality of the banking sector's relatively unseasoned loan book could deteriorate by more than expected, potentially resulting in a demand-squeezing credit crunch. The downturn in the economy and/or correction in property prices could be larger-than-expected, leading to more substantial deterioration in asset quality.


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