After Effects of the Eurozone Crisis Still Being Felt in Central and Eastern
BUDAPEST, Hungary, May 2, 2013
BUDAPEST, Hungary, May 2, 2013 /PRNewswire/ --
BankersAccuity , the global standard for payment efficiency and compliance
solutions, today presented key trends facing the banking industry in Central
and Eastern Europe (CEE) following their attendance at the recent 27 ^th BACEE
Regional Banking Conference in Budapest.
Discussing the outlook for European banks, the conference focused on the
current macro-economic environment in CEE and the economies of Hungary,
Serbia, Poland, Czech Republic, Slovakia and Russia in particular.
Despite signs of growth in the region, many foreign banks are considering
leaving CEE due to perceived lack of opportunity, non-performing debt and
money laundering risk. With this in mind a key challenge for local banks is to
sustain attractive levels of profitability to remain competitive- especially
prevalent with increased sovereign and corporate credit risk serving as a
catalyst for banking fragmentation in the region.
Counterparty credit riskis a major issue in CEE and following a panel
discussion by BankersAccuity on Correspondent Banking KYC Best Practice, it
was apparent that there are concerns over inadequate due diligence systems
currently in place. Local financial institutions need to implement robust
correspondent banking, KYC and credit risk analysis in order to overcome the
challenge of accurately assessing and trusting the stated asset values of
correspondent and investment banking partners in particular.
Like many economies in Europe, the CEE countries are facing increasing
regulatory pressure with Basel III increasing capital requirements for local
banks. The newly announced Capital Requirements Directive (CRD-4) adopted by
the European Parliament, will only add to the burden requiring organizations
to hold sufficient capital to cover losses of investments and honor loans and
customer withdrawals. Banks in CEE feel squeezed, balancing regulator demands
with market expectation to perform and it comes as no surprise that 62% of
delegates felt that increased regulation will make banking less competitive.
"Mirroring the challenges faced by other emerging market economies, local
banks in CEE are receiving conflicting recommendations from the regulators and
the markets," commented Guy Sheppard, Senior Product Manager at
BankersAccuity. "Regulators require them to increase their capital
requirements to make them safer meanwhile shareholders are focused on
increasing profitability or face disinvestment. At BankersAccuity, we're
striving to assist CEE economies in applying globally recognized due diligence
processes to reduce their exposure to credit risk and encourage growth in the
Recommending BankersAccuity as a comprehensive KYC reference source for the
international banking community, Istvan Lengyel, Executive Secretary at BACEE
commented, "BACEE uses all the BankersAccuity due diligence products including
BA.com, the Due Diligence Repository and Credit Risk and we find them to be
extremely useful." To stay in touch with BankersAccuity follow
@BankersAccuity on Twitter or join us on LinkedIn.
Notes to the Editors
Owned by one of the world's leading business to business publishers, Reed
Business Information and part of Reed Elsevier , BankersAccuity sets the
global standard for payment efficiency and compliance solutions. It includes
Bankers Almanac and Accuity, premier data services that have been providing
solutions to banks and businesses worldwide for over 140 years.
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Cognito Bryony Scragg/ Paul Bowhay Direct: +44-(0)20-7426-9400
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