Central and eastern European banks in the EU faced a sluggish 2013, but Poland led the region in terms of growth and the Czech Republic in terms of returns. Baltic banks are also starting to rise to the challenge.

The Turkish banking sector is in good health, although the country's lower economic growth, political developments at home and abroad, and the continued impact of financial regulation on retail banking are acting as a brake on growth and profits.

While conflict and economic instability rage all around Turkey, the country is providing an oasis of calm, with an economy set to grow by 3% to 4% in 2015, and a young, educated population proving a draw for investors.

Ukraine’s banking crisis extends far further than the country's recent troubles, says James Hydzik, but finally the central bank is cleaning up the sector and bringing banks to heel. 

Russia’s central bank governor, Elvira Nabiullina, talks to The Banker about what is being done to address the inflation and devaluation of the rouble and the tools she is using to fortify the country’s economy against external shocks. 

With the six-month drop in the global oil price stinging the Russian economy, it looked as if the country's government would introduce reforms to protect it against future shocks. But with prices on the brink of a recovery, this positive momentum towards change is in danger of being lost. 

Banks in Russia are feeling the force of Western sanctions, with funds from international capital markets slowing and deposits experience a lull, but some institutions are finding ways to maintain commercial relationships with foreign investors. 

Lithuania became the 19th country to adopt the euro as its currency in January, joining Baltic neighbours Latvia and Estonia. But what benefits can the country expect to see from this move?

As the need to resolve the eurozone crisis intensifies, member states seem to be moving further apart on key issues, including the architecture of the union and the terms of Greece's bail-out package. But while political rifts open up, many economists agree that the only way forward is by working towards greater economic integration. 

Cyprus's banks all passed the European Central Bank's stress tests, a result that is indicative of the recovery that is under way in the country's financial sector. However, for these institutions to return to full health they must tackle their non-performing loans, a feat that is as much in the hands of the country's politicians as its bankers.

Government intervention – both to tackle the country's problematic foreign exchange loans and stimulate new lending – has revived the Hungarian banking market. Now, the race is on for banks to return to profitability.