Sign in Subscribe
Banks (Finance)

Credit Demand Remains Robust in Central, Eastern, and South-Eastern Europe

Strategic Insights

— 1 min read

Credit demand in Central, Eastern, and South-Eastern Europe (CESEE) has remained robust, driven by both corporate and retail sectors, according to the European Investment Bank's (EIB) latest Cross-Border Banking Survey. Banks in the region expect a slight improvement in credit supply conditions in the coming months, driven by a shift towards more favourable lending practices. Two-thirds of cross-border banking groups aim to reinforce their operations in the region, underscoring their commitment to long-term growth potential.

Key Takeaways:

  • Credit demand in CESEE has remained robust, driven by corporate and retail sectors, with strong demand from small and medium-sized enterprises (SMEs) seeking financing for investments and operational costs.
  • Banks in the region expect a slight improvement in credit supply conditions over the next six months, with a shift towards more favourable lending practices, especially for SMEs.
  • Two-thirds of cross-border banking groups aim to reinforce their operations in CESEE, indicating a long-term commitment to the region and a belief in its growth potential.
  • Debora Revoltella, Chief Economist at the EIB, highlighted the system's strength in CESEE, but also cautioned that global challenges would require structural adjustments in the real economy and a re-direction of trade and investment flows.
  • Kyriacos Kakouris, Vice President of the EIB, emphasized the high market potential in CESEE countries such as Czechia, Bulgaria, Slovakia, and Romania, where profitability is higher compared to banks' overall group operations.

Statistics:

  • The EIB's Cross-Border Banking Survey covers around 15 international banking groups and 85 local subsidiaries or independent local banks, making up more than 50% of banking assets in most CESEE countries.
  • The survey indicates a notable strength of credit demand, with SMEs driving demand for financing for investments and operational costs.
  • Banks anticipate a slight improvement in credit supply conditions over the next six months, with a shift towards more favourable lending practices, especially for SMEs.
  • The EIB signed nearly EUR89 billion in new financing for over 900 high-impact projects in 2024, boosting Europe's competitiveness and security.

Sources:

  • European Investment Bank. (2025). Cross-Border Banking Survey.
  • European Investment Bank. (2025). Press Release: Credit demand remains robust, driven by both corporate and retail sectors.
  • European Investment Bank. (2024). EIB Group Annual Report.
  • European Investment Bank. (2024). EIB Group 2024 Financing Volume and Project Statistics.

Read more