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Banks in Eastern Europe
Deutsche Fassung
Abstract
After privatisation, Eastern Europe’s banking sector developed dynamically. Massive investment from mainly West European banks contributed to this. That changed with the financial crisis of 2008-2009. Today, banks are holding back on lending. Eastern Europe’s growth potential is not being maximised. A prerequisite for boosting lending would be to clear the banks’ balance sheets of bad loans. In addition, it would be necessary to create a union of European banks with uniform regulations. Through Western parent companies, the banking sector in the East European Euro area would be affected by this directly, while the banking sector in the non-Euro area would be affected indirectly.
(Osteuropa 7/2014, pp. 85–104)