Romanian banking market not likely to see new players before international noise hushes, Rekkers say

The banking market in Romania continues to be attractive to foreign investors but new entries are less likely to occur this year before noise on international markets quiets down, GM of Banca Transilvania, the country's fifth lender by assets, Robert Rekkers said.

As long as there are problems on the home markets of big players such as France or Spain, new entries on the Romanian market are less likely, according to Rekkers.

Banca Transilvania witnessed significant drops of its shares on the Bucharest Stock Exchange following corrections on the international bourses. However, for the moment, the bank is not for sale, Rekkers said.

Despite corrections on the bourse, the Romanian banking market is much more stable than it used to be several years ago considering that the subprime lending crisis did not echo in Romania. The banking system carried on growing 50-60 percent in the first four-five months this year in the background of the 8.2 percent economic advance in the first quarter.

On the other hand, Banca Transilvania reduced the credits and deposits pace in Q1 against the same period last year.

Of the total credits the lender gave 70 percent are in lei and 30 percent in foreign currency. Credits given to population amounted at 4 billion lei at the end of May.

The lender released today a credit card for doctors, including a malpraxis insurance policy with a credit line of up to 5,000 euros and free Internet banking services for six months.

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