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Press release on the NBR decision regarding the intention of OTP Bank to purchase Banca Romaneasca
The National Bank of Romania (NBR) announces that, pursuant to Government Emergency Ordinance No. 99/2006 on credit institutions and capital adequacy, approved with amendments and supplements by Law No. 227/2007, to NBR Regulation No. 6/2008 on the taking-up of business and the changes in the standing of credit institutions, Romanian legal entities, and branches in Romania of third-country credit institutions, as well as to NBR Regulation No. 11/2007 on the authorisation of credit institutions, Romanian legal entities, and branches in Romania of third-country credit institutions, it opposes the intention of OTP Bank Romania SA to purchase a direct qualifying holding (of 99.28%) and the intention of OTP Bank Nyrt. respectively to purchase an indirect qualifying holding (of 99.28%) in the share capital and voting rights of Banca Romaneasca SA Member of National Bank of Greece Group.
The NBR reiterates that, in line with the provisions of Article 52 of Law No. 312/2004 on the Statute of the National Bank of Romania, the information obtained while exercising the central bank tasks in the field of authorisation, regulation and prudential supervision of credit institutions shall be considered as professional secrecy and shall imply compliance with the related confidentiality obligation, and any such information may be disclosed only subject to conditions expressly laid down by law, the statement concludes.
The OTP Bank Romania acquiring operation of Banca Romaneasca and several Romanian assets was authorised by the Competition Council in December 2017.
Banca Romaneasca is member of the National Bank of Greece Group. The Romanian assets aimed by the transaction are related to the branch in London and Malta respectively, belonging to the National Bank of Greece SA.
On Wednesday, information delivered by sources said that NBR has rejected the transaction. Speculation on the market said that the origin of the capital with which the payment for Banca Romaneasca should have been made could give rise to questions, hotnews.ro informed.
Sources suggest that the NBR refusal to allow OTP to acquire Banca Romaneasca would pave the way for another bank consolidation, with players such as Banca Transilvania or even the smallest player in the market, Patria Bank (formerly Carpatica).
The competition for acquiring Banca Romaneasca, OTP had among the competitors Banca Transilvania, the bank in Cluj offering much less for Banca Romaneasca’s capital.
The agreement between OTP Bank and the National Bank of Greece, the shareholder of Banca Romaneasca, was completed by announcing the agreement on July 27, 2017. OTP Bank said at the time that it had reached an agreement with National Bank of Greece to acquire a 99.28% of the shares, and that the completion of the transaction is to take place in early 2018.