BNR became net lender in 2008 for the first time since the end of the ’90s

The year-end brings an estimated annual growth in loans of 20-25 percent, compared to rates exceeding 60 percent in this year’s first half. At the end of September, the 42 lenders had assets worth €79.6 bln and registered €1 bln in profit.

Foreign financing attracted by banks operating on the Romanian market dropped €1.51 bln in the past one and a half months alone. But, considering that Romania has suffered two downgrades in 2008, financing costs doubled. Now, the battle in the banking sector is on deposits, and lenders are offering interest rates up to 15 percent for lei deposits and 7.5 percent for euro deposits.

BNR lowered the Cash Reserve Ratio for lei to 18 percent from 20 percent, thus providing extra liquidity in the system, worth some €530 million.

More than one quarter of local banks modified their top management structure. One of the most significant changes was the appointment of British banker Dominic Bruynseels as Chief Executive Officer of Banca Comerciala Romana (BCR), Romania’s largest lender in terms of assets.

The share capital of banks amounts to €3.3 bln at the end of this year’s first three quarters, considering that the value of granted loans reaches €52 bln. The solvency of banks fell to 11.85 percent at the end of this year’s first nine months, from over 18 percent in 2006.