PwC: Interest rise seen as highest risk for Romanian banks

The analysis assesses banking risks and highlights concerns referring to the current market conditions, especially the liquidity shortage and the critical situation of lending and derivative markets; fears are quite high that these tensions will result in global recession.

'The classification of the 30 risk elements facing the banking industry in 2008, reveals that Romania, Hungary and Russia considered rising interest rates as one of the major concern,' said PricewaterhouseCoopers Romania country managing partner Vasile Iuga.

The survey confirms that at global level, the financial turmoil has laid bare a series of flaws in the bank management triggered by factors such as increased financial complexity, inadequate bonus schemes and insufficient attention paid to risk management.The authors of the survey polled 376 bankers, analysts and regulatory authorities from 38 countries.