Abstract

New Europe banking is one of the most promising markets in the world. The EU convergence process has guaranteed a fast realignment to EU legal and regulatory standards, thus reducing systemic risk. In the forthcoming years, real economic convergence will allow a long period of fast growth, while low banking penetration, as well as complete underdevelopment of a number of market segments and products, suggest strong development opportunities. Starting from the late '80s, by recognising important development opportunities, a number of international banks, mainly coming from the eu market, started to operate in the region, considering it as a second home market where to grow. Seven international banking groups are today leader in the region. Among them, UCI has acquired a leading role, with a widespread presence in the market and being among the top player in most of its countries of operations. The New Europe is a long term strategy for the group, as testified by the role of the region in total assets and net profits. If the main rationale for the presence in the market is to exploit growth and development opportunities, the aim of sustaining Italian enterprises operating in the region is also a priority.