Baltic banking markets growth to decelerate in 2008-2009

"After the record 2007 year the growth of Baltic banking markets will decelerate in 2008-2009. Banking Assets in Estonia and Latvia are expected to grow by ~20% per annum in nominal terms, while the banking market in Lithuania is likely to sustain quicker development with ~30% assets increase per annum" said Marcin Mazurek, the CEO of Intelace Research, a consulting company specialized in CEE financial markets research.

BANKING MARKETS
Baltic banking markets were flourishing in 2007. Explosive expansion of lending, including mortgage and very quick deposits growth contributed to jump in total banking assets by ~35% on average, placing Latvia, Lithuania and Estonia among the top 5 most rapidly growing banking markets in Central and Eastern Europe. Encouraged by growing volumes in 2007 Baltic banks kept investing in infrastructure and significantly expanding branch, ATM and POS networks

PERSPECTIVES
The recent macroeconomic tensions, overheated real estate markets and worsening worldwide economic climate are likely to reduce temporarily the rate of growth in all Baltic countries. Especially Latvia and Estonia may be affected by lower growth rates and possible currency devaluation. Nevertheless Baltic economies are relatively flexible and healthy, so after temporary problems, they are likely to quickly resume growth. Intelace Research expect that banking assets in Baltic countries will further increase by 23% on average p.a. through 2009.

For more information on recent developments on Baltic banking markets please refer to the publication: "ESTONIA, LATVIA, LITHUANIA - BANKING MARKET IN THE BALTICS 2008 - CEE BANKING BRIEF" available under http://www.intelace.com/publications.htm

ABOUT THE REPORT
The report "BANKING MARKET IN THE BALTICS 2008" builds on the success of the 2007 issue and provides an updated view of emerging trends in banking sectors of: Estonia, Latvia and Lithuania. Similarly to the previous version, this analysis covers a wide range of perspectives including: market size, competitive structure, market shares and comparative analysis - benchmarking. The new study has been upgraded with most recent forecasts of banking assets evolution through 2009, separately for each of countries in question.

Marek Kujda
Press Officer
Intelace Research
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02-791 Warszawa, POLAND

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Intelace Research is an independent consulting company focused on Central and Eastern Europe financial markets. It specializes in management consulting and custom research services including: market entry strategy, product launch, performance and benchmarking analysis.

During 2005-2008 Intelace Research has offered its products and services to 50+ clients including major CEE banks and several "The Banker" top world banks. To learn more about the company visit Intelace Research webpage under: http://www.intelace.com .

This release was published on openPR.