Emerging Europe has been the laggard of the emerging world over the past few years, due in large part to problems in its banks. But with the region seemingly on the mend, might local banking sectors now support growth? In this Watch, we show that while the health of the region’s banks has improved, they remain fragile in a significant number of countries. And in Turkey, banks appear to be more vulnerable to an external shock now than they were in 2008.
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