The focus is clearly on new EU Member States, which account for ¾ of Austria’s total exposure to CESEE. Moreover, Austrian banks’ subsidiaries have a solid local funding basis, which limits the contagion risks via the reversal of financial flows.
14  BIS Review 82/2009  Conversely, these home countries share a particular responsibility with respect to the stability of national financial markets and financing structures in CESEE and CIS, the disruption of which could severely exacerbate the impact of the international financial and economic crisis.