Vienna Initiative, makes case for deeper financial integration in emerging Europe
The founding members and partners of the initiative gathered in Vienna on 27 and 28 March to reflect on the achievements of the successful multinational coordination model that was instrumental in preserving financial stability in the region.
The 10 Years Vienna Initiative - Anniversary Conference was also attended by Jasmin Mahmuzić, Director of the Banking Agency of the Federation of BiH.
Ewald Nowotny, Governor of the Austrian National Bank and the host of the anniversary meeting said: “This event is not only an opportunity to celebrate. It is also an incentive to keep up with the good work. The Vienna Initiative will continue to preserve financial stability by providing substantial input to international discussions, propel financial integration and enhance growth in countries of central, eastern and south eastern Europe.”
An agreement in 2009 between policy makers and the banking industry ensured that foreign banks continued to maintain exposure and fund their subsidiaries in central, eastern and south eastern Europe (CESEE), helping avert banking crises as economies experienced a sharp downturn.
The final report of the working group on IFI financial products supporting investment in the region found that IFIs have been playing an important role in supporting access to finance of the private sector. IFIs could play a catalytic role in the transition of the region’s economies towards a new growth model. For that, better and more accessible data on IFI activity and product supply could help reach clients and stakeholders in the region.
The Vienna Initiative brings together leading International Financial Institutions (IMF, EBRD, EIB, the World Bank Group), European Institutions (European Commission, ECB as observer) home and host country central banks, regulatory and fiscal authorities as well as the largest EU banking groups active in emerging Europe.
The Full Forum also addressed the impact of Anti-Money Laundering/Combating the Financing of Terrorism (AML/CFT) on banking in CESEE. The World Bank and the IMF presented the evolution of regulatory and supervisory approaches as well as the importance of effectiveness. The availability of sustainable finance in the region was a special focus as participants discussed the conclusions of the Central Banks’ Network for Greening Financial Systems.
The Vienna Initiative will continue coordination between policymakers and bankers to address the remaining and future challenges, including the resolution of bad debt, regulatory reform, deepening financial integration, availability of funding for innovation and mobilising private sector’s contribution to climate and energy goals.