Development Prospects of Banking Sector in Central and Eastern European Countries in Terms of Financial Integration

This study examines banking transformations in Central and Eastern Europe (CEE) under conditions of economic liberalization, dependence between development countries efficiency their systems. The comparative method methods economic-mathematical modeling were applied. Considering the positive correlation financial structure growth, confirmed by literature findings, sector can become a crucial factor convergence for new EU members. Analysis revealed lower depth European region comparison to Eurozone, but higher growth rates. Regression models significant causality expansion CEE countries, extremely high foreign market shares create prerequisites shocks transmission through contagion channel case instability banks’ origin.