Stiri	Stiri afaceri	Stiri companii	Evenimente de afaceri

KPMG: Domestic banks have significant exposure to Romania's sovereign debt, which is a risk in case of contagion

Romanian banks have insignificant exposures to governments in the euro zone, which are currently undergoing a strict monitoring process, in exchange having a significant exposure to Romania's sovereign debt, which may represent a risk in case the contagion caused by the debt crisis in the countries in the euro zone put pressure on the country's finances, KPMG Romania Senior Partner Serban Toader said.

'The exposure to sovereign debts is a major challenge, especially in the context of the crisis in the euro zone,' Serban Toader points out in a release remitted to Agerpres. In his opinion, the new regulation package to be implemented could influence the banks' profits and the minimum capital requirements according to Basel III will represent a challenge and will affect the profitability and return rate of banks' capital. 'In this uncertain environment, the prospects concerning the availability of future profits may change rapidly, having as a result a possible reduction in these balances by registering provisions for impairment,' the KPMG Romania representative adds. In his turn, KPMG Romania Financial Service Partner Cezar Frunza points out that 'two of the 15 European banks analysed in the ‘Focus on Transparency' report carry out operations in Romania, but the situation of most Romanian banks, the Romanian branches of some larger groups included, is different from that of the European banks analysed.' Therefore, while in 2008 there had been a good year in the recent history of the banking sector in Romania (in a considerable contrast with Western Europe, but also influenced by certain profitable sales carried out by banks that year), in the following two years, 2009 and 2010, the Romanian banks' profits decreased substantially. 'The reason is that recession hit Romania (and Central and Eastern Europe) later than it did Western Europe, really beginning to produce effects in 2009. Since then, Romanian banks have continued to be affected by the economic decline, which has been more acute than in other European countries, and, at the same time, by the contraction registered in the crediting activity which has progressed since the beginning of recession, having as a result the profits' descending trend in 2009 and 2010,' Cezar Furtuna says. According to him, the profits of the most important 25 Romanian banks, with total assets amounting to approximately 71 billion euros at the end of 2010, stood at 517 million euros last year, dropping 27 percent compared with the level registered in 2009 (considering the constant exchange rate), based on the International Financial Reporting Standards (IFRS). In 2010, only 15 of the above-mentioned 25 banks registered profits, 11 banks were profitable in both years, but only four registered growth in profits compared with 2009. The annual KPMG Performance Benchmark Report will be released this autumn based on the IFRS financial data and will give a full outlook on the main factors determining the performances registered in the Romanian banking system in 2010, as well as the prospects for 2011.

Sursa: http://www.agerpres.ro

Tags: banks romania profits registered romanian which exposure sovereign kpmg euro

Articole similare