It has been a confusing summer for observers of central and eastern European banking. Barely a week has gone by without a new spate of headlines pointing to the risks surrounding a potential pullback by western European banks from the region. However, the messages have been at best mixed and at worst contradictory.
At one end of the spectrum are the European Bank for Reconstruction and Development and its fellow members of the Vienna 2.0 initiative, designed to help maintain foreign banks’ exposure to central Europe.
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