The largest capital increases operated by banks in H1

Recapitalizations of local lenders in the first six months of this year totaled €169 million, according to data provided by the National Trade Register Office (ONRC), equal to nearly six percent of the total foreign direct investments (FDI) in Romania in the same period. Last year, recapitalizations in the banking system represented three percent of the value of FDIs.

The largest capital increase, worth €53.6 mln, was operated by Bancpost, while Banca Romaneasca and Millennium Bank rank second and third, with €43.5 mln and €34 mln, respectively.

Analysts said that these recapitalizations are in response to the outsourcing process, developed by companies within groups. "Banks have undergone an outsourcing process and had to choose between two solutions: capitalizations or subordinated loans. Also, banks increased their share capital to protect even more their solvency indicator, which is affected by the rise in provisions," the Secretary General of the Chartered Financial Analyst (CFA) Association Romania, Adrian Mitroi, said.

money.ro