Banking Sector and Economy of CEE Countries: Development Features and Correlation
Iurii UMANTSIV1, Olena ISHCHENKO1
1 Kyiv National University of Trade and Economics, Faculty of Economics, Management and Psychology, Department of Economic Theory and Competition Policy, Kyiv, UKRAINE
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Abstract. This research focuses on the analysis of current trends in the banking sector of Central and Eastern Europe (CEE), and on its role in the development of the economy. This region is represented by countries situated at different levels of development and types of economic system. The following countries are analyzed: Bulgaria, Poland, Romania, the Republic of Belarus and Ukraine. The article starts with a general description of the economy of each of the five countries listed above, followed by a discussion of main trends of their development and a comparison of these states based on the status of their socioeconomic development. The study will also examine the banking systems of each of these countries looking at the types of banks that are present on the market, capital ownership, and market share, as well as the main indicators of soundness of the banking system. The study found that there are both common features and differences in the banking sectors of the analyzed countries. We also found a correlation between the tendencies of real sector development and bank investments. Finally, our article revealed the role played by the European Union in funding the economies of analyzed countries through their operational programs.
K e y w o r d s: economy of CEE country, banking system, financial sector, role of banks, correlation between GDP and bank investments, EU operational programs, CEE countries, banking sector development