Stiri	Stiri afaceri	Stiri companii	Evenimente de afaceri

Foreign banks interested in Romania

Some foreign banks are likely to be interested in acquisitions in Romania next year, which could lead to local banking market consolidation, according to the President of Raiffeisen Bank Romania, Steven van Groningen. 'It is very difficult to make forecasts, given that banks currently need to solve their domestic problems,' he added, Business Standard daily reports on Wednesday.

Furthermore, according to van Groningen, foreign markets believe that Romania is a high risk country, in terms of economic stability. Speaking of the reduction of financing lines by mother banks to their subsidiaries in Romania, van Groningen said this will be an indirect effect of the foreign currency lending slowdown.

'There will definitely be a shift from foreign currency loans to lei-denominated loans,' he added. van Groningen also indicated that all lenders should attempt to attract more deposits and grant fewer loans. He said that a slowdown in lending is positive for the banking system. 'It is natural that mother banks are more reluctant to provide financing, as they are trying to balance the loan-deposit ratio, currently estimated at 120 percent. We plan to rely less on financing from mother banks by attracting deposits,' he explained.

He recently said that Raiffeisen has not withdrawn a single euro from deposits made by Romanian clients. On the contrary, the mother bank supports its local subsidiary by providing euro for Romanian economy loans. 'Money saved in deposits in Romania, either in euro or lei, are offered as loans to individuals or companies in Romania,' he said.

The lender posted 74 million euro in net earnings in the first half of 2008, some 57 percent higher year-on-year, while assets rose 16 percent. At the end of June 2007, the bank had 500 branches in Romania. (S.M.)

 

Sursa: http://www.rompress.ro

Tags: romania banks foreign loans euro

Articole similare