Banking markets in Central and Eastern Europe will increase in 2015, but countries with high levels of foreign currency loans such as Romania will be more exposed to currency volatility, which can be enhanced by decreasing funding from parent banks, according to Moody’s Investors Service.

Financial stability is improved in most European banking systems, but continues to be affected by the low profitability of the banks, according to the report.

“Weak macroeconomic conditions weigh on Europe’s banking sector, and low overall bottom lines implies that the European banking industry remains structurally vulnerable,” Moody’s analysts say, reports local Mediafax.

editor@romania-insider.com