Emerging Europe

A new generation of firms are seeking market share from more established players in an already crowded investment-banking scene.

The deputy head of commercial and investment banking at the Russian state lender says aggressive growth continues after the departure of Todd Berman, head of investment banking.

In an interview with Euromoney, Bogov discusses credit growth, bank regulation, foreign dominance of the country’s lenders, and the Vienna initiatives.

The investigation by the European Securities and Markets Authority (ESMA), uncovering alleged flaws in the sovereign-ratings process, could presage a more intrusive supervisory regime, rekindling the debate about their role in global financial markets.

The debt crisis is not over. A renewed bout will spring from banks in the EU periphery.

VTB builds paper trading, considers physical; Sberbank launches Zurich financing unit.

Privatization programme back on track; stock exchange chief targets EM status.

In a wide-ranging question-and-answer session, governor Jorgovanka Tabaković reveals shifting sands in the Serbian banking system, efforts to boost domestic sources of finance, capital market reform, Basel III and Vienna initiatives.

Bankers discuss the progress made so far and the potential for Turkey to become a vibrant financial services hub.

As growth slows, Russia needs to become less volatile as a market.

Poland’s secure risk profile is still justified, according to economists and other country-risk experts taking part in Euromoney’s Country Risk Survey. With the sovereign holding steady this year in ECR’s global rankings, and on a longer-term upward trend, its credit ratings should be adjusted upwards.

CFO and acting CEO Viktor Belyakov defends his firm’s strategy amid one of Russia’s biggest corporate dramas this year.

Authorities in the Czech Republic might be pleased to learn that the koruna is one of the emerging market (EM) currencies most vulnerable to a dollar rebound.

Since 2002, Ali Babacan has earned Turkey’s government the trust of markets. But what can the ruling party’s economy chief say to reassure investors now, after some government members’ attacks on the local financial sector? The answers are not all encouraging.

Tinkoff has sold a clever story of another kind of Russian bank.

Ali Babacan, the Turkish government’s economy and finance chief, has defended attacks against the local financial sector during protests stemming from the redevelopment of Istanbul’s Gezi Park.

Europe’s Tarp moment could be looming as ECB president Mario Draghi issues a sharp warning that the year-long review of the region’s banking system will be credible and might require public backstops. Many long-neglected issues are coming to a head, from accounting and bank-reporting norms to national regulatory conventions. However, there is no clarity yet on the hot-button questions.

The IPO of Tinkoff Credit Systems, a Russian consumer finance bank, trounces rivals’ valuations, even as bad debts tick up and tighter regulations loom.

Many market players are still largely unprepared for the European Market Infrastructure Regulation, which aims to transform the derivatives market, writes Rule Financial’s David Field.

The Baltic states’ improving growth prospects are under pressure due to the eurozone’s frailties and their close trade and investment links to Sweden and Russia.

Act now, bankers advise; Weaker names to struggle

Turkey and Russia need to watch out; their regional dominance of investor attention is no longer so assured.

Bank grows trade finance volumes; Expansion continues in emerging markets

Issuer ‘comes of age’; creates first euro benchmark.

After EU entry in July and despite five years of recession and a worrying local court ruling on foreign-currency mortgages, Croatian banks are in surprisingly good shape. The state even hopes to sell one of its biggest lenders.

The sovereign’s country risk score is still up on a year ago and its ranking unchanged in the ECR survey.

Euromoney’s recent coverage of trends in the region, including the shifting sands in the Russian banking system, CEE banks’ fight with incompetent policymakers, Turkish banks braving the market storm, and an interview with the Czech central bank chief on FX intervention. We also have an exclusive interview with the lawyer of the former BTA chairman Mukhtar Ablyazov and the Hungarian government’s fight with the banking sector.

The Czech crown weakened this week after Miroslav Singer, the head of the country’s central bank (CNB), revealed in an interview with Euromoney his controversial support for intervention in the FX market to avoid Japanese-style deflation, in the teeth of resistance from some CNB board members.

The emerging market sell-off since May is just the start of a painful multi-year adjustment process – and China has blazed a trail for the next downturn. Capital abundance, deflationary pressures and imbalanced global demand continue to drive the 15-year cycle of credit booms and busts.

For all their strengths, the ferocity of this summer’s market sell-off has amplified some vulnerabilities that could be the first true test in a decade of the resilience of banks and the economy as a whole.