In response to the financial crisis of 2008, the global banking industry has been undergoing fundamental regulatory changes, imposed by the Basel III Agreement, the 2010 US Dodd-Frank Act and the introduction of a new European supervisory structure. This paper analyses the possible long-term impact of this new regulatory framework on the banking sectors of CEE-5 countries. The aim of this paper is to contribute to the discussion on the anticipated long-term impact of the new regulatory environment for bank stability and efficiency, with a focus on host countries from Central and Eastern Europe. The main research question is whether the post crisis regulatory and supervisory architecture, based on a new macro and micro institutional framework, will have a positive impact on banks in CEE. To answer these questions, we analyse the condition of CEE-5 banking sectors. In particular, we are looking how banks in CEE-5 reacted to two different periods: the pre-crisis period of a dynamic economic and credit market growth and the period of global economic and financial collapse (2008), using DEA methodology, measures of market competitive conditions and bank stability index Z-score.