Romania Faces No Systemic Risk In Bk Sector – Ctrl Bker

"There is no systemic risk [in the banking sector] at horizon. If problems appear, they can be solved, on a case-by-case basis, through recapitalization or changing the owners, but the capitalization would not be made from public funds", Lazea said during a financial seminar.

Lazea added that Romania ranks 4th among 11 Central and Eastern European countries, based on the number of foreign banks operating on the Romanian market, which have an 88% weight in the banking system as regards the asset value.

The central bank’s chief economist also said that, under the current crisis conditions, the massive presence of foreign banks on the emerging markets has become rather burdening than positive.

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Lazea said his statements do not represent the central bank’s stance, but his own opinions.

Romanian banks totaled 332.46 billion lei (EUR1=RON4.1548) net assets at the end of March, 5.73% higher than RON314.64 billion end-2008

In the analyzed period, the solvency ratio slightly fell from 12.34% at the end of last year, to 12.03% at the end of March.

The minimum solvency ratio limit is at 8%, but the central bank plans to raise it to 10%.

Past due and doubtful loans proportion in total loans portfolio almost doubled, from 0.35% end-December to 0.66% at the end of March.

Banking sources told MEDIAFAX that the stress tests conducted by the central bank based on the financial data at the end of 2008 indicate a need for supplementary capital of EUR1 billion the most for the banks, after the increase of the solvency ratio minimum limit at 10% in September.