Péter Csányi, deputy CEO, head of the digital division at OTP Group, is making sure the bank's new supercomputer speaks Hungarian. 

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.

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.

Hungary has enjoyed stronger economic growth than many of its European neighbours in recent years, but the country's minister of economy Mihály Varga is wary of taking this success for granted, insisting that the country's long-term outlook hinges on a number of external factors, from the recovery of the eurozone to a resolution of the conflict between Russia and Ukraine.

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. 

The European Central Bank has helped assuage fears of an imminent eurozone breakup, but sovereign, supranational and agency debt management officials must still contend with ratings downgrades and difficult political and fiscal situations in a number of countries. The Banker hears from a range of EU issuers both inside and outside the eurozone.

Although foreign banks may be reining in finance for their subsidiaries in central and eastern Europe, any transition to local currency bond financing looks likely to be gradual.