East European Banking Industry Shows Ambiguity

Professional ServicesBanks ♦ Published: August 8, 2012; 20:08 ♦ (Vindobona)

For West European banks, their subsidiaries in Eastern Europe are either highly problematic or the cash cows.

East European Banking Industry Shows Ambiguity / Picture: © Erste Group / Christian Wind

For Erste Group, the Czech Republic is one of the most profitable markets. Most Czech banks have written off risky assets of troubled eurozone countries. As a result, Czech banks continue to reduce provisions for losses.

Andreas Treichl, CEO of Erste Group recently stated that the CEE region “will be the place to be in the next years”. Treichl hopes that the political…