Vienna Initiative sets priorities for 2014

The Steering Committee of the Vienna 2 Initiative met on January 13, 2014 in Vienna to discuss the Initiative’s priorities for 2014. At the meeting, hosted and chaired by Raiffeisen Bank International, the following five priorities for the Vienna Initiative were agreed:

Promote an all-inclusive Banking Union, with a special focus on non-EU members in the SEE region. Given the Euro area banks’ systemic importance in these countries, and with most countries on the path to EU membership already, it is critical that a coordination framework is developed between non-EU member SEE countries and the new European supervisory and resolution authorities. In parallel, the operationalization of the Banking Union, including the SSM, bank resolution, and backstop design, requires continuing attention for the EU non opt-in countries. The Vienna Initiative will actively advise and support this process, acknowledging meanwhile the importance of the speedy completion of the EU Banking Union.

Closely monitor deleveraging and credit trends in the Central, Eastern, and Southeastern European (CESEE) region. Cross-border funding withdrawal, crisis legacy issues such as high non-performing loans (NPLs), and the prospect of tightening financing conditions from unwinding of unconventional monetary policy actions by advanced economy central banks can together present a considerable risk to credit recovery, and therefore growth, in the region. We will continue our close monitoring to spot any systemic risks at an early juncture through the Initiative’s flagship products the Deleveraging and Credit Monitor and the Bank Lending Survey.

Tackle the critical NPL problem in the CESEE countries through a coordinated multi-stakeholder effort. NPL levels in many countries in this region are quite high and still rising. This hinders credit growth and economic recovery. The Initiative will engage banks, regulators and IFIs to create incentives for jump-starting a speedy and fair NPL resolution in 2014 and design joint country action plans in this area.

Increase credit enhancement and risk mitigation to support new credit in the context of still high risk perception in the CESEE region. A working group has been formed to evaluate existing credit support schemes and to come up with concrete proposals for more effective credit enhancement schemes.

Develop faster local funding sources in CESEE countries. Shifting away from a model dependent on cross-border financing requires greater and fast diversification of funding sources. The development of local currency capital markets is of particular importance. Progress in this area must be accelerated to help credit and recovery and the IFIs participating in the Vienna Initiatives can proactively support this process.

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For additional information and the latest publications visit: www.vienna-initiative.com

23 October 2013

Vienna 2 Initiative draws attention to weak credit growth and special challenges for South Eastern Europe

The Vienna 2 Initiative Full Forum met in Brussels on 21-22 October. It assessed recent trends in deleveraging, credit provision, and non-performing loans (NPLs) in the banking sectors of Central, Eastern and South Eastern Europe (CESEE). It discussed the impact of the recently proposed Single Resolution Mechanism for a European banking union on CESEE. A special session highlighted the particular challenges faced by the non-EU countries of South Eastern Europe (SEE).*

14 November 2014

Credit Recovery and Banking Union in focus at Vienna Initiative 2 Full Forum

The Vienna Initiative 2 Full Forum met in Brussels on 13 November. Its key focus was to work towards sustained credit recovery by accelerating balance sheet cleaning, reducing non-performing loans (NPLs) and boosting the use of credit enhancement schemes. It also discussed options to enhance cross-border regulatory coordination between the recently-established Single Supervisory Mechanism (SSM) and emerging European countries that are not already members, with a special focus on non-EU countries in South-Eastern Europe (SEE).

19 November 2015

Banking consolidation and regulatory requirements in focus at Vienna Initiative 2 Full Forum

The eighth Full Forum of the Vienna Initiative assessed key achievements over the past year and proposed an agenda for future cooperation at a meeting hosted by the National Bank of Poland in Warsaw on 18 November on cross-border banking issues affecting Central, Eastern and South Eastern Europe.

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