first session on bank profitability we will hear the results of a recent oenb study 4 that shows that austrian banks ’ margin decrease with the short term interest rate. a drop of 100 bps in the reference rate is associated with a drop of 16bps in net interest margin. coming back to capital : banking capitalization is not only relevant from a financial stability perspective. but also supports monetary policy measures as empirical analysis show. here, the results of a topical study of the national bank of belgium5 are very interesting : monetary policy transmission works better if banks are better capitalized. first of all, the belgian colleagues show that european credit support policies have been successful in stimulating credit flow of banks to private sector. and second, better capitalized schmitz w. s., sigmund m., valderrama l. ( 2016 ) : bank solvency and funding cost : new data and new results. imf wp ( forthcoming ) ecb ( 2016 ) : financial stability review. nov. 2016. https : / / www. ecb. europa. eu / pub / pdf / other / financialstabilityreview201611. en. pdf? f0feb4db4cc3aacc6f824b829c4f 27d4 kerbl s., sigmund m. ( 2016 ) : from low to negative rates : an asymmetric dilemma. oenb financial stability report 32. dec. 2016. https : / / www. oenb. at / publikationen / finanzmarkt / finanzmarktstabilitaetsbericht. html national bank of belgium ( 2016 ) : the transmission mechanism of credit support policies in the euro area. working paper research no 302. oct 2016. https : / / www. nbb. be / doc / ts / publications / wp / wp302en. pdf seite 3 von 5 banks have on average responded more to the credit support policies of the eurosystem as a result of more favorable size, retail and liquidity effects. an austrian study6 supports the finding that poorly capitalized banks are less responsive to monetary policy changes. this topical study is based on a unique data set that matches data of non - financial firms ( that answered a questionnaire concerning credit limitations they faced by their banks ) with rating information on this firms as well as data on their major bank. of course

the impact of the western high - tech embargo will be felt more strongly. chances are slim for any improvement in the medium term, with the recent https : / / www. libertarianism. org / columns / immanuel - kant - war - peace https : / / fee. org / media / 4512 / mises0404. pdf https : / / www. cambridge. org / core / journals / journal - of - economic - history / article / abs / role - of - war - in - moderninflation / c34e37999f088f965c64c9c61a543a8b, see also : https : / / www. globalresearch. ca / war - causesinflation / 22616 https : / / www. clevelandfed. org / publications / economic - commentary / 2007 / ec - 20071201 - a - brief - history - ofcentral - banks https : / / wiiw. ac. at / economic - forecast - for - eastern - europe - the - worst - is - yet - to - come - n - 570. html partial mobilization resulting in a labor shortage, as hundreds of thousands of men are either enlisted into the army or leaving the country. similarly, the economies in cesee have held up better than initially thought. the expansion in the first half of the year has exceeded expectations, so that the eastern eu economies are projected to grow by almost 4 % on average in 2022. this is due to the recovery after the pandemic, rising incomes and solid demand from germany. the region is bracing itself for a tough winter, however, as the situation is likely to change dramatically in the coming months. while the sanctions have so far had weaker - than - expected impacts on the russian economy, they are due to leave their mark in the long run. unlike in russia, outright recession is not yet in the cards for europe. even though the euro area economy has fared better than expected in the first half of 2022, the economic consequences of the war continue to darken its outlook while pushing up inflationary pressures. economic activity is likely to stagnate in the winter as headwinds from gas supply disruptions and surging energy prices are mounting. without a doubt, russia ’ s full - scale invasion of ukraine has been a watershed moment that will have enormous repercussions for europe and beyond.