The material on this site is for financial institutions, professional investors and their professional advisers. It is for information only. Please read our Terms & Conditions, Privacy Policy and Cookies before using this site. Please see our Subscription Terms and Conditions.

All material subject to strictly enforced copyright laws. © 2022 Euromoney, a part of the Euromoney Institutional Investor PLC.

Scrapping over the scraps – a dog-eat-dog world in CEE IB

Investment-banking volumes in emerging Europe have fallen to their lowest levels for more than a decade. Some international banks are withdrawing capacity, while there is little sign of a pick up in the capital markets. So why are some of the universal banks still making positive noises?

CEE Fighting Dogs-350

Illustration: David Manion

Two years after the start of the Russia crisis, western bankers are leaving Moscow in droves. Political risk has also been rising across the rest of the region, taking the shine off equity markets and curbing enthusiasm for investment, while over-liquidity in local banking sectors has all but killed off nascent corporate bond markets.

Volumes in equity and debt capital markets are down to levels not seen since 2003. Even M&A, a regional bright spot, is at post-financial crisis lows. By early December 2015, net investment banking revenue for central and eastern Europe had reached just $322 million, according to Dealogic, barely a quarter of the total generated in 2013. 

“Pure investment banking doesn’t pay that much at the best of times, and since the Russia freeze, the wallet in CEE has become very small,” says one senior banker. 

Or as another exasperated banker puts it: “We’re riding pretty high in the league tables. But to be frank, that isn’t worth much these days.”

It is hard to overstate the effect of the Russia shutdown on regional flows.

You have reached premium content. Please log in to continue reading.

Read beyond the headlines with Euromoney

For over 50 years, our readers have looked to Euromoney to stay informed about the issues that matter in the international banking and financial markets. Find out more about our different levels of access below.


Unlimited access to and

Expert comment, long reads and in-depth analysis interviews with senior finance professionals

Access the results of our market-leading annual surveys across core financial services

Access the results of our annual awards, including the world-renowned Awards for Excellence

Your print copy of Euromoney magazine delivered monthly

£73.75 per month

Billed Annually


Unlimited access to and, including our top stories, long reads, expert analysis, and the results of our annual surveys and awards

Sign up to any of our newsletters, curated by our editors


Already a user?

We use cookies to provide a personalized site experience.
By continuing to use & browse the site you agree to our Privacy Policy.
I agree