When the financial crisis struck in 2008, markets feared that the unprecedented capital inflows to central and eastern Europe (CEE) during the boom years might sharply reverse, causing a sudden stop in the region’s economies. National central banks and regulators, multilateral organisations such as the European Bank for Reconstruction and Development (EBRD) and cross-border banking groups active in the region came together in Vienna in January 2009 to coordinate a response that helped avoid a worst-case scenario.
As the eurozone crisis intensified during 2011, those fears began to re-awaken. This time, market turmoil is combining with regulatory pressure to drive cross-border banking groups to deleverage.
