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The crisis reduced profits in Romania's banking system six folded

de Dan Popa, transl/adapt. C.B.
Marţi, 8 decembrie 2009, 18:14 English | Business

The net profit of the Romanian banking system will amount this year to a maximum of 200 million euros, in contrast 1.2 billion euros, the amount for last year, BRD-GSG vice-general manager Petre Bunescu declared on Tuesday at the Annual Financial Banking Analysts Association meeting.

According to Bunescu, the level of this year's net profit is low, compared to the banking actives and passives volume (82 billion euros), but the foreign shareholders continued to invest in the banks they operate in Romania. Bunescu added that this year, the level of these investments in personal funds represented 231 million euros.

"The provisions increased by 200-300% in general, but the foreign lines of credit worth of 30 billion euros for banks in Romania insure sufficient force for these to contribute in 2010 at the clients' activity re-launch. The local banking system cannot be different from the economy", the BRD-GSG vice-general manager concluded.

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