Banks expand by over one thousand branches in 2006

Local banks opened over 1,100 new branches in 2006, thus marking it the year with the fastest expansion of banking networks. Compared with December 2005, the end of last year saw an approximately 33% increase in branches, according to data collected by ZF from the banks in the system. Although the number of banks witnessed a record increase, the new openings concentrated particularly in urban areas, where banks are attracted by clients with a higher business potential. For 2007, only 18 of the 37 banks in the system provided details on their network expansion plans. Even so, this year will see the inauguration of at least 900 branches.

Currently, over 4,400 branches are operational, as compared with 3,300 branches a year ago. The bank openings continued at a fast pace until the last days of 2006. Several banks, among which BCR, Raiffeisen Bank, Alpha Bank and Piraeus Bank announced the opening of several facilities, in the last week of December. The rapid expansion was made possible by the shift to a new bank branch model - a small-sized office, mainly targeting retail clients and SMEs, with only several employees (between 5 and 10).

Source: zf.ro