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Small and medium-sized Romanian banks outperform market leaders in terms of market shares

Medium-sized banks operating in Romania, such as Volksbank and Piraeus, as well as small banks, such as Marfin Bank, doubled or even tripled the assets in their portfolio in 2007, outperforming market leaders in the province of assets.

The most spectacular development was recorded by Piraeus Bank, which assets tripled, propelling the market share of the bank to 2.4 percent, from 1.12 percent in 2006. BCR, the market leader in terms of assets, was the hardest hit by share loss to smaller bank, as its share in 2007 went down from 26.18 percent to 23.8 percent. Nevertheless, BCR, BRD and Raiffeisen managed a moderate asset increase, and their growth rates were limited by large value of their main assets. Bankers are expecting moderate asset increases in 2008, as Q1 2008 results indicate asset decreases in the case of Raiffeisen and Bancpost, two of the five best performing banks in Romania. They are also predicting changes in the classification of the ten best performing banks, and one such repositioning happened in Q1, involving Austrian Volksbank, which shot up from place number eight to place number four. 'The policy of speeding up crediting in an attempt to gain market shares, a policy that continued even after the commencement of the world financial crisis, has led to an erosion of indicators that quantify credit risks. Thus, the weight of loans and interest rates deemed ‘dubious and ‘losses' in the total of loans and interest rates advanced to 4 percent in 2007, from 2.8 percent one year before,' reads the 2007 activity report of the National Bank of Romania (BNR). Sursa: http://www.rompress.ro

Tags: market banks percent assets bcr bnr brd

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