However, given the links that have often been identified between lending booms and banking and currency crisis, it is clear that authorities in the region had in a number of cases to take steps to avoid credit growth that may be too fast.
More broadly, countries in the region still lag behind those in central Eastern Europe and the Baltics, as measured by indicators such as the EBRD’s transition indicators. Improvements in the quality of the judiciary, the overall business environment and, generally, institutional reform are needed.