This paper examines the development of international financial centres (IFC) in Central and Eastern Europe (CEE). The study argues that the development of the financial services in CEE is characterized by external dependency, which is manifested in the form of hierarchical command and control functions over CEE financial subsidiaries within the West European IFC network. The paper quantitatively compares the factors of IFC functions of Budapest in comparison to those of Warsaw and Prague. It argues that despite the lack of market evidence showing signs of a regional centre focus during the transition period, there are some signs of IFC formation. The paper assesses the uneven impact of the global economic crisis upon CEE financial centres and confirms that their development trajectories became more differentiated as a result of the crisis. The steady decline of Budapest during the second half of the 2000s was accompanied by the rise of Warsaw. Our analysis concluded that Budapest, despite its earlier endeavours, most likely lost the competition to become an international financial centre.
The idea of the paper refers to the comparison of functions that determine an international position of Warsaw, Prague and Budapest. It is also an attempt to evaluate the chances of these three cities to win and develop individual metropolitan functions in the future. At the same time, this paper aims at identifying the main factors, both obscuring and supporting the development of metropolitan functions of cities under analysis. The author recognizes the following reasons of CEE metropolieses development – a significant change of geopolitical position, due to socio-economic transformation, a membership of Poland, Czech Republic and Hungary in the structure of EU, globalization and civilization of information technology. Within the first part of the paper capitals are analyzed in relation to several theoretical approaches. The second part shows the results of author’s research, based on statistical data analysis, referring to metropolitan functions of these cities.
