SmithNovak - Industry Leading events for the global debt market
The European Bank Coordination “Vienna” Initiative is a framework for safeguarding the financial stability of emerging Europe. The Initiative was launched at the height of the first wave of the global financial crisis in January 2009. It brought together all the relevant public and private sector stakeholders of EU-based cross-border banks active in emerging Europe, which own much of the banking sectors in that region and also hold a significant part of government securities..
The Initiative has provided a forum for decision making and coordination that helped prevent a systemic banking crisis in the region and ensured that credit kept flowing to the real economies during the crisis. The Initiative specifically sought to limit the negative fallout from nation-based uncoordinated policy responses to the global crisis and to avoid a massive and sudden deleveraging by cross-border bank groups in emerging Europe.
As the new wave of the eurozone crisis unfolded toward the end of 2011, signs of a severe credit crunch within the eurozone, and of rapid deleveraging in emerging Europe, multiplied. Furthermore, some serious gaps in regulatory coordination between home and host countries’ authorities once again became apparent.
SmithNovak - Industry Leading events for the global debt market