The Bank market in CEE

A comparison of the CEE banking market with the euro area shows a significant growth differential in favour of Central and Eastern Europe: annual credit growth in the past five years in CEE countries reached 14%, almost three times the figure for the euro area (5%). In the deposits sector, the differential is less pronounced: deposits in the CEE countries rose by 10% annually, compared with 6% growth in the euro area. Growth is expected to continue in coming years: in the period to 2013, annual growth of loans should reach about 14% and deposits should increase by more than 10% annually. This impressive growth potential is also reflected in absolute figures: loans per capita in the euro area amount to some € 12,000, compared with € 720 in the CEE countries. Deposits present a similar picture. This means that the banking market in CEE will continue to grow at a considerably faster pace than in the euro area. Bank Austria Creditanstalt and other banks benefit from the fact that banking business, with its financial intermediation function for the economy, is growing more strongly than the economy as a whole.

As a result of the restructuring process of the banking market in the CEE countries, foreign banks have a market share of over 70% in CEE. In the euro area, the market share of foreign banks is less than one-quarter. Both sides benefit from market openness: the CEE countries import stability and growth in the financial services sector, and banks in the euro area welcome the opportunity to expand their business. Bank Austria Creditanstalt makes effective use of this potential: measured by pro-rata total assets, BA-CA is among the top 3 foreign banks in CEE.