True, the same capital flows were a key ingredient in the credit booms and busts in most countries of the region. While I will return to this aspect in a moment, we should not overlook the importance of financial interconnectedness between the euro area and Central, Eastern and South-Eastern Europe.
Around three quarters of bank assets in the region are foreignowned, mostly by banks from other EU countries. Their subsidiaries and branches have played and will continue to play a central role in improving the efficiency of financial intermediation across the region and contributing to credit availability. II.