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Banking sector prediction for Eastern Europe.
By: StockWeb   Thursday, August 16, 2007 9:48 AM
Sectors: Finance , Europe

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The growth for banking sector is expected to rise annually by 15% except in Czech Republic and Hungary based on UniCredit study. The most growing should be Russia with 20%. The main support is seen in loans area where they expects rise 29% yearly. Share of foreign capital increased from 78% (2005) to 82% this year. There is not enough space for another enlargement. And therefore new acquisitions activities are spreading to newly developed economies like Kazakhstan, Georgia, Ukraine. Here are the biggest bank holdings involved in: UniCredit, Erste Bank, Raiffeisen.

Czech banking sector is several years ahead to compare with other Eastern European countries. Share of banking aktivum per GDP is 100%, in Western Europe is 250-300% and in Russia 48%. Household loans per GDP in Czech is 15%, Western Europe 55% and Russia 6%.

 

 
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