Erste study: Central and Eastern European banks have no reason to tighten the nod for credits

Inter-banking markets function properly in Central and Eastern Europe and banks have no reason to tighten the nod for credit requirements because banks in this area do not have high risk loans on the credit market, an Erste Group bank report reads.

Erste Group credit researcher analyst Alihan Karadagoglu declared, quoted by NewsIn, that banks in he area have no investment in the sub prime market and thus they have no reason to worry. He added that spreads between key interest rates and monetary policy rates show high trust in local banks.

Credit markets reacted positively to the coordination plan set up by European leaders to support the financial systems. Erste expert declared that the credit blockage will probably last a while but that trust will be re-instated at some point. However, he points out that credit commissions will remain high.