Loading page...

Romanian Business News - ACTMedia :: Services|About us|Contact|RSS RSS

Subscribe|Login

ARB: Romania, the 11th in the EU from the point of view of profitability of the banking sector capital

Romania is the 11th in the EU between 2008-September 2018 from the point of view of the profitability of the capital in the banking sector, with a rate of profitability of the own capital of 4.65%, stated on Friday Gabriela Folcut, the executive manager of the Romanian Association of Banks (ARB) at the conference ' The future of evaluation for loans guarantee'.

'Romania is 11th in the EU between 2008 - September 2018 from the point of view of capital profitability, ROE ( rate of profitability of the own capital) being 4.65%.Bulgaria has a level almost double than Romania (8.34% against 4.65%) similar to other countries in Central and Eastern Europe: Poland ( 9.15%), Slovakia (9.50%) and the Czech Republic has a level almost three times higher (12.91%). With ROA ( the rate of profitability of assets) of 0.51% between 2008 - 09.2018, Romania is 8th in the EU after states such as Slovakia (0.88%) or Poland (0.97%). Other countries had a level almost double against Romania, such as Bulgaria (1.05%), Estonia (1.08%) and the Czech Republic (1.15%)' Gabriela Folcut said.

She said that over the last two years the rate of profitability of the banking sector has consolidated. At the level of 2018, the profitability of the capital in the banking area (14.9%) was surpassed by that of the companies in the commerce (23.6%), services (21.6%) and manufacturing (18.2%).

Folcut showed that the financial brokerage ( non-governmental loan /GDP) assures the transfer of capital, but as well as of the risk between debtors and depositors. With a degree of 26.6% in 2018, Romania has the lowest level of the EU. The target is the growth of the degree of financial brokerage to the medium level registered in the EU, of 83%. The banking system is prepared from the point of view of indicators of structure to meet the target of growth of the financial brokerage.

According to the quoted source, the balance of the non-governmental loan is 262.6 billin lei, up bz 7.9% in July 2019, as compared to July 2018. For the next three years, the strategies for lending and financing of the main banks in the sector have in view an increase of the lending to companies and a reduced growth of the activity on the population sector. The orientation towards companies, by drawing the sustainable potential for endebtedness, is a challenge for the domestic banks.


More