In the aftermath of the global financial crisis, populist politicians in central and eastern Europe realised that struggling homeowners could be their new powerbase. Lenders are facing a potential onslaught of unwelcome government intervention in the banking sector, though there could be a silver lining. Stefanie Linhardt reports.
Bucharest Stock Exchange lacks only liquidity to move from 'frontier' to 'emerging' market status. And, as Stefanie Linhardt discovers, a partnership with the pan-south-eastern European trading platform SEE Link could help the Romanian bourse get there.
The turmoil in Greece is having an impact on financial markets throughout the eurozone, but this impact may be felt greater in its five neighbours where Greek banks have a particularly large presence: Albania, Bulgaria, Macedonia, Romania and Serbia.
For years, Austrian lenders Erste Bank and Raiffeisen Bank have enjoyed strong profits at their central and eastern European operations, but with growth in these economies slowing, more recent results suggest that they may need to rethink their strategies in the region.
The previously bleak economic picture in Romania is improving, and with it the performance of the country's banks. But high non-performing loan ratios, underdeveloped financial markets and a slump in the credit market are making it difficult for the country's lenders to pick up much momentum.