Foreign currency loan conversions and currency mismatches

This paper examines the effect of currency conversion programs from Swiss franc-denominated loans to other on risk for banks in Central and Eastern Europe (CEE). franc mortgage proliferated CEE countries prior financial crisis contributed volume non-performing as strongly appreciated during post-crisis period. Empirical findings suggest that loan reduced mismatches francs but increased foreign currencies individual countries. asymmetric arises restructuring a non-local existing high level euro banking system.