Bank profits in 2008 pressed by competition and the subprime effect

Romanian bankers enjoyed record profits in 2007, but they fear both new players on the market and a continuation of the subprime crisis in 2008, which will reduce profits. They admit that the subprime crisis did not affect them in 2007, with consumer demand and local company financing demand growing consistently.

“We thought that the main challenge would be the international liquidity crisis, limiting access of Romanian banks to external financing sources and their expansion", said the President of Bancpost, Mihai Bogza.

For the most important player on the market, Banca Comerciala Romana (BCR), the year 2008 could mean stock exchange listing, profit up 20 percent over 2007 and 8,200 employees, compared to its 10,000 in 2007.