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March 8, 2021
BUSINESS

Moody’s: Banking industries in Romania, Slovenia, Hungary to remain unprofitable

The Hungarian, Slovenian and Romanian banking industries will remain unprofitable this year as owners cut spending to boost capital during the euro area’s financial crisis, according to Moody’s Investors Service, smh.com.au reports. Lenders in Hungary and Romania are hurt by their reliance on funding from parent companies in western Europe, said Simone Zampa, a senior analyst for Moody’s, in a phone interview from London.

But Czech, Slovak and Polish banks fund themselves mainly with deposits and will keep reporting profits, he said. Romania’s banking industry has published losses for the past three years, while rising bad loans in Slovenia have prompted speculation the euro-area member state will need an international bailout.

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