European banks began to hasty retreat from Eastern Europe, following pressure to focus on domestic markets and to conserve limited resources and the situation threatens to trigger a credit crisis in the region, according to a Wall Street Journal analysis (WSJ).
Dozens of banks in the euro area flocked to Eastern European markets in recent years, hoping to take advantage of rapid economic growth in the region and relatively untapped potential of financial services, but the banking crisis in Western Europe caused by the debt crisis of state reversed this trend, notes WSJ.



Thus, banks are rushing to withdraw from Eastern Europe, threatening lending.



"That means, at best, that credit growth in Eastern Europe will remain at very weak. But I think there is a considerable risk, underestimated, of a new credit crunch," comments Neil Shearing, chief economist for markets Emerging Capital Economics in London, wrote Tuesday.



For example, at least seven European banks seeking investors willing to buy operations in Poland and Turkey to get the cash they need to deal with the situation in Western Europe, notes the WSJ.



However, two of the largest European banks, Commerzbank (Germany) and UniCredit (Italy) have announced plans to stop or reduce lending in some Eastern European countries that were ahead of the market priority for both groups. Authorities have imposed both banks to strengthen capital by several billion euros each by June.



The population is îngijorată as reflected by withdrawals of deposits in Latvia at the end because of rumors that past săpătmânii Swedish banks have problems and are preparing to leave the country. Sweden has not adopted the euro and Swedish credit institutions controlled 40% of the Latvian banking system assets.



A third of Latvia's Swedbank ATMs were empty on weekends, although the bank has denied the rumors. Swedish group said later that was not affected by massive withdrawals from Latvia and the Latvian authorities announced they are investigating rumors spread.



The situation in Latvia has stabilized months withdrawals back to normal.



Euro area banks have promised at the beginning of the crisis, keeping their exposure to Eastern Europe, but the situation has changed and many credit institutions in Greece, Italy, Portugal, Belgium, Germany and Ireland began to flirt with the idea output emerging markets.



European banks hoped that operations in these countries can attract the interest of other financial groups, are in a better situation. Investor interest seems low for such assets, according to sources close to the auction organized by the Portuguese group Millennium BCP operations in Poland. Potential buyers are cautious and reluctant to invest in an environment so uncertain, but the Portuguese bank believes that the operations in Poland are high quality and want to keep if you find a serious investor, showed other sources.