Funding the future: beyond bank-based finance

OeNB conference looks into new capital sources to support growth and innovation in CESEE

“Well-functioning capital markets may provide benefits – for individual households and the whole economy,” said host Martin Kocher, Governor of the Austrian central bank, on Friday in Vienna at the Conference on European Economic Integration. The conference explored what financial systems need to look like in the future to support growth, innovation and convergence in Central, Eastern and Southeastern Europe and the EU.

“Well-functioning, deep and liquid capital markets and, thus, broadening current participation in capital markets, may provide benefits – for both individual households and the whole economy. They improve access to finance for companies and help people invest their money in higher-yield investments. Also, well-functioning capital markets have become increasingly important for monetary policy today.” That was Martin Kocher’s key message as he opened the Conference on European Economic Integration (CEEI) on Friday. The one-day conference, hosted by the Oesterreichische Nationalbank on its Vienna premises, took place under the heading: “CESEE’s financial future: funding growth and innovation.”

Growth, innovation and convergence – but how?

This was the central question raised at the CEEI 2025. Everyone present agreed that CESEE needs to improve its capital markets and move from bank-based financing to more diverse funding sources. This requires better infrastructure and bold regulatory reforms, along with other measures that will encourage venture capitalists and households to channel their money into the CESEE capital market. “If we want to strengthen Europe’s innovative capacity, we must also open up new ways of financing in the countries of Central, Eastern and Southeastern Europe. This is the only way to tap into the region’s enormous potential, maintain our competitiveness and protect our standard of living,” said OeNB Vice Governor Edeltraud Stiftinger during a panel discussion at the conference.

The experts gathered at the conference discussed different approaches, including the EU’s Savings and Investments Union, regional harmonization initiatives and national strategies for deepening capital markets. All these efforts aim to address financing needs for boosting productivity, thus supporting economic growth and the green and digital transformation.

CEEI 2025 – who was there?

The conference attracted many leading experts for raising capital and channeling funds where they are needed, among them keynote speakers Nicolas Véron (Bruegel and the Peterson Institute for International Economics) and Manju Puri (Duke University). A panel discussion among central bank governors and deputy governors from CESEE rounded off the conference. It addressed capital markets in CESEE today, the role of cross-border initiatives and fintech innovation, as well as the role of central banks and financial stability implications.

Background info: Conference on European Economic Integration (CEEI)

The CEEI is a conference the Oesterreichische Nationalbank (OeNB), Austria’s central bank, organizes every year. Every fall, the CEEI brings together leading experts in monetary policy, economic research and finance. Traditionally, the conference has a special focus on the perspective of the economies of Central, Eastern and Southeastern Europe (CESEE) – one of the OeNB’s foremost research areas.