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.
Thanks to forward-thinking regulation, the Turkish capital market is one of the most innovative in the world but, in terms of volume, it is still relatively undeveloped. Can a government initiative to make Istanbul a leading international finance centre marry this world-class innovation with volumes that will see it compete with the likes of London and Dubai?
Petar Chobanov spent little more than a year as Bulgaria's finance minister before the government resigned and he had to step down from his post. He describes the reforms that he started during his tenure and explains why it is important for the new government to continue this work.
Banks in Kyrgyzstan face numerous challenges beyond the accessibility problems caused by the country's mountainous terrain. A distrust of conventional banking and strong position of microfinance institutions means the central Asian state is under-penetrated by conventional lenders, a situation that is slowly but surely starting to change.
Political tensions continue to dog Russia's capital markets. Following a difficult few months, the shoots of a recovery seemed to be appearing until the US imposed another round of sanctions on the country and a deadly attack on a commercial airliner flying over a disputed region of Ukraine sparked fresh hostilities, jeopardising the market's fragile rebound.
Since taking office as governor of the National Bank of Moldova in 2009, Dorin Drăguţanu has implemented the country’s first inflation-targeting policy, has seen interest rates on loans and deposits decline and has welcomed amendments to the law on financial institutions. He speaks to The Banker about challenges surrounding transparency in the banking sector and economic implications of the Russia-Ukraine crisis.
The problems faced by Moldova's banking sector are not performance related, but instead are deeply rooted in a lack of transparency in banks’ shareholder structures. After opaque shareholder changes in the country's two largest banks in 2013, authorities are working on a resolution.
Caught up in European regulation, Germany’s public banks are trying to adapt to new challenges. Across all three banking pillars in the country, financial institutions are particularly struggling with increased competition in retail banking and low profitability.
The complicated geographical and political make-up of Bosnia-Herzegovina, combined with its struggling economy and low purchasing power, makes life difficult for its overcrowded banking market. However, hope is on the horizon as economic growth picks up and looming elections bring promise of a more investor-friendly financial system.