Lending appetite from banks is expected to grow, especially for SMEs and consumer credit, although banks show more limited willingness to extend credit to large companies and for mortgages. This growing confidence around credit supply could help narrow the supply-demand gap that has persisted in recent years.

The CESEE Bank Lending Survey for the second half of 2025, conducted by the European Investment Bank, indicates that two-thirds of cross-border banking groups surveyed about future long-term plans intend to expand their operations.

"The latest survey confirms the resilience and potential of the banking sector in Central, Eastern and South-Eastern Europe," said Marek Mora, Vice President of the EIB. "Credit demand remains robust, supply conditions are showing signs of improvement, and credit quality has continued to progress over the last six months. Two thirds of the banks present in the region are planning to increase their long-term exposure there."

The market potential in the CESEE region is widely regarded as important, with most surveyed banks assessing it as high, particularly in countries like Czechia, Romania and Slovakia, or medium, mainly in the Western Balkans markets. Profitability in Central, Eastern and South-Eastern Europe also remains strong compared to overall group operations, with robust performance in Bosnia and Herzegovina, Bulgaria, Czechia, Hungary, Kosovo, and North Macedonia.