This is especially the case of Macedonia and Croatia (with 55% and 62% of total financial assets, respectively) with most CESEE countries staying above the EU average (30%). Subsequently, equity, insurance and pension investments are below the EU average. There are some notable exceptions (Estonia, Bulgaria, Hungary and Lithuania) with share of equity and investment fund shares in total financial assets of 52%, 42%%, 40% and 40% respectively. Broadening the financial knowledge of households and raising their awareness of the possible investment alternatives, might provide support to institutional investors. Chart 16: Households` financial assets  Source: Eurostat  Even if the potential of institutional investors is large or underutilized, allocating their funds to cover the financing gaps requires tailored-made financial instruments. “These groups of investors are more likely to be interested in investments in fixed income instruments, given their potential to deliver long stable cash flows with attractive yields, but potentially with less volatility than equity options”. Instruments that can be used for this purpose are: 1) corporate bonds issuance (by SMEs and SME lenders), 2) securitization structures (project bonds on infrastructure side and loan securitization on the SME side), 3) covered bonds (mainly for SMEs financing), and 4) debt funds (for infrastructure and SME related assets). Given the low level of development of capital market structures in CESEE countries, connecting SMEs financing needs with the funds of bank and non-bank investors via securitization of SMEs loan seems to be viable solution, thus assisting banks in their ability to fund and distribute a risk.
The level of investment, ten years after the emergence of the crisis, is below the pre-crisis maximum in the EU as a whole, and in the CESEE region as well. Exception is countries such as Macedonia, Poland, and Estonia recently, where investment pattern was different, and the current level is above the pre-crisis one. Chart 3: GDP and demand components, 2008=100 CEE  160.0  160.0  140.0  120.0  120.0  100.0  100.0  80.0  80.0  60.0  60.0  40.0  20.0  20.0  2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017  2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017  40.0  180.0  SEE  140.0  Baltics  180.0 160.0  140.0  140.0  120.0  120.0  100.0  100.0  80.0  80.0  60.0  60.0  40.0  40.0  20.0  20.0  2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017  160.0  Region  2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017  180.0  Source: Eurostat and NBRM calculations. At the current juncture, an important question is whether such slow post-crisis investment recovery should be perceived as a natural cyclical adjustment, or are there some structural forces that also play role?