The gap in the use of bank financing is one of the most pronounced in the region: only 15% of small enterprises use bank financing, in stark contrast to 50% of medium-sized enterprises. Alternatively, about 90% of small enterprises rely on internal financing, one of the highest levels in Eastern Europe.
Financial infrastructure is unevenly developed, according to WB economists. According to the surveys, while credit bureaus and payment systems are viewed positively (over 80% of entrepreneurs’ satisfaction), the collateral registry remains problematic, especially for NPOs.
Innovation in the financial sector is limited: about 45% of financial institutions reported that they have not innovated, explaining this by both structural barriers and a regulatory framework that they perceive as insufficiently adapted.
The findings are based on responses from 9 commercial banks, 54 non-bank credit institutions (NBCOs) and regional comparative data from surveys undertaken by the WB in the South East Europe region in 2024.
