Romanian banking system not to be affected by the international crisis

“I find it absurd that BRD [Banca Romana de Dezvoltare], an excellent bank, dropped by 20 percent in one week.  It is strange that no one but the Governor of the National Bank can explain Romania’s economic situation,” said Ciorcila.

Ciorcila believes that the effects of the crisis will be felt on European markets, where he expects a wave of consolidation in the banking system. “We will witness deals overnight. Banks have now reached very attractive prices,” said Ciorcila. He added that the European system is still very different from the American one, because Europeans are more conservative. “The problems in America come from too much intelligence. They have created far too sophisticated products, which not even they understood,” Ciorcila added.

In his opinion, the Romanian stock exchange is affected because the market is too small, and if someone wants to sell there is no counterpart.
Banca Transilvania shares were suspended last week from trading to increase the nominal value. Meanwhile, the shares of BRD, Romania’s largest bank on the Bucharest Stock Exchange, lost 20 percent of their value.

Banca Transilvania shareholders approved the consolidation of nominal share value, an operation also used by BRD three years ago, when the shares were suspended for two months. “We were lucky to be suspended now. We do not know yet when the shares will re-enter the market, but such a procedure takes some time. Still, I hope that when we re-enter the market, the crisis in the US will be over,” said Ciorcila.

According to analysts, Banca Transilvania and Banca Comerciala Carpatica could have difficulties contracting liquidities in the coming period, since the two banks are financed by the international market. “No one will push money from the mother bank to branches, but Banca Transilvania will not be affected by this crisis. We want to consolidate our market position,” Ciorcila added.

He confirmed that Banca Carpatica, owned by businessman Ilie Carabulea, expects takeover offers, and that Banca Transilvania is interested.