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
an all-inclusive Banking Union, with a special focus on non-EU members
in the Southeastern European (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 Single Supervisory Mechanism, 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.
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. The Steering Committe
will continue its 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.
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 International Financial Institutions
(IFIs) to create incentives for jump-starting a speedy and fair NPL resolution
in 2014 and design joint country action plans in this area.
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.
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 Initiative
can proactively support this process.
European Commission: Simon O’Connor, simon.o’email@example.com, Tel.
+32 (0)2 296 73 59
EBRD: Anthony Williams, firstname.lastname@example.org, Tel: +44 (0) 20 7338 7805
EIB: Christof Roche, email@example.com
IMF: IMF Media Relations: firstname.lastname@example.org, Tel: +1 202-623-7100
World Bank Group: Kristyn Schrader-King, Kschrader@worldbank.org, Tel:
+1 202 458 2736