The European Bank Coordination Initiative (“Vienna Initiative”) seeks to safeguard the stability of the financial sector in central, eastern and south-eastern Europe. It is a forum in which international private and public sector actors take coordinated decisions. The creation and development of the Vienna Initiative have been driven by the EIB, the European Commission, the EBRD, the IMF and the World Bank.
Maintaining credit during the crisis
Launched in January 2009, the Initiative helped with emergency crisis-resolution measures to ensure the short-term viability of the region’s banking sector. Work focused on avoiding withdrawal from the region by international banking groups. As well, the EIB, the World Bank and the EBRD acted to maintain a flow of credit into these economies.
Coordinated, long-term policy action
After the immediate crisis abated, efforts turned to coordinating longer-term action as well as countering any re-emergence of financial stress. After new systemic concerns emerged in late 2011, it was decided to formalise these arrangements. The result was the “Vienna Initiative 2.0”, launched in January 2012.
Specifically, the objectives of the Vienna Initiative 2.0 are to:
- Avoid disorderly deleveraging
- Ensure that potential cross-border financial stability issues are resolved
- Achieve policy action (notably in the supervisory area) is taken in the collective interest
For more information, visit the Vienna initiative website: http://vienna-initiative.com.