Hard times ahead for smaller banksPublish date: 19-08-2008
Smaller banks on the local market have begun experiencing difficulties, due to more expensive financing from international markets, with significant impact on their profitability.
Analysts expect consolidation on this segment, as some shareholders will prefer to exit the Romanian market, or lenders to focus on clear niches.
"On a market such as Romania's, one has to have a reasonable share to cover for costs and be successful. Certain banks on the second and third market segments [Ed. n. small and medium-sized banks] start to experience difficulties, because the market becomes consolidated, and large banks have better abilities and faster growth than small banks," McKinsey Romania's Managing Partner, Andrei Caramitru, told Business Standard. McKinsey is the top global player on the strategic consulting market.
It is not likely that very large foreign banks will come to Romania, he added, because of high investments and significant risks. "Naturally, we should see a consolidation, especially on the third segment of the market. However, many of the small banks are owned by foreign lenders with very high aspirations on the market," Caramitru added.
- Insurance market stagnated in 2013 while GDP chare dropped to 1.3%
- The Romanian Leasing Market as of December 31, 2013
- Millennium Bank reports best results since its launch, helped by stronger banking income and cost cuts
- BCR cheapens First Home loans and lowers interest loans for loans in lei
- Millennium Bank's new Salary account clients receive up to 600 lei bonus and their utility bills' payment
- GarantiBank and Seamless introduce SEQR in Romania: the newest mobile payment solution
- Bancpost telecom services, now provided exclusively by Romtelecom and COSMOTE Romania
- Millennium Bank cards offer discounts in Domo stores
- BCR Supervisory Board reshuffles Management Board
- NBR decide to lower the monetary policy rate to 4.25 percent per annum
- Common appointments in Romtelecom and COSMOTE Romania
- Up to 5.5% annual interest rate for Millennium Bank's promotional three-month lei deposit
- Eurozone in recovery mode but gap between North and South still widening
- UniCredit Tiriac Bank and RBS Romania announce the successful completion of the retail clients' migration
- Millennium Bank grants First House loans in lei