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. © 2021 Euromoney, a part of the Euromoney Institutional Investor PLC.
Wealth

Private banking: Regionals on the rise in CEE

Low interest rates in emerging Europe are driving less committed players out of the private banking market but giving a boost to regional lenders by enhancing the appeal of investment products.

 

PB 2016 logo-196w

Results Index

Regional banks are emerging as the big winners in the battle for private banking clients in central and eastern Europe. While Swiss banks continue to be the first choice of Russia’s ultra-wealthy, in the rest of the region it is lenders with a strong local presence – led by UniCredit, Raiffeisen and Erste – that increasingly dominate the market.  Bankers say this is mainly due to the squeeze on margins caused by historically low interest rates across central and southeastern Europe in particular that has made it uneconomical for less committed players to cover the region. 

“The big international banks who had a small rep office in certain countries and were trying to attract clients with their global brand are finding it harder to compete today in an environment of reduced margins,” says Fabian Stenzel, head of private banking at Raiffeisen Bank International. As a result, he adds, many have cut back their activities in the region. 

Andras Kallay, private banking director at Erste Bank Hungary, agrees. 

“In the past few years, the smaller players have lost market share and some have disappeared,” he says.

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.

SUBSCRIBE ONLINE TODAY

Unlimited access to Euromoney.com and Asiamoney.com

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

FREE 7 DAY TRIAL

Unlimited access to Euromoney.com and Asiamoney.com, 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

LOGIN NOW

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