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Bucharest
October 1, 2020
BUSINESS

Romania, attractive due to the lack of banking services

The Chairman of the Board of the Romanian Banking Association (ARB), Radu Ghetea thinks that no bank will withdraw from Romania in the coming years, because the country is attractive for crediting institutions due to its low degree of bankarisation, according to wall-street.ro. “Romania went through a more difficult moment than now in 1998-2000. At that time, BNR made two club-loans, because Romania could not pay its external debt that amounted to USD 106 M in July 1998. All the important banking groups were present locally. When Romania could not pay its external debt, these banks answered the call of the Central Bank and even over-subscribed the offer,” Ghetea said.

According to the ARB official, there is no reason for banks to leave Romania, except for the situation when their parent banks decides to withdraw from all foreign markets. “Romania looks much better than other European countries, like Greece, Spain or Portugal,” the ARB Chairman added. According to Ghetea, parent banks will continue to finance their Romanian subsidiaries, but only if the local banks will need these funds, and not just for the sake of keeping the money unused here.

On the other hand, ARB asked authorities to allow banks not to work with the public on January 3rd 2012, thus allowing them to switch from the Romanian accounting system to the IFRS international standards. Starting January 1st 2012, all the banks that operate in Romania must report their results based on the IFRS standards.

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