The Romanian banks hold in their portfolio Government papers (bonds and bills) worth 7% of GDP, the highest amount in Europe, and this might bring them significant losses if the interest rates are rising and the yield curve flattens, according to Florian Neagu, deputy head of the macrostability division of the National bank of Romania (BNR), quoted by Economica.net. The losses potentially incurred by banks under adverse scenarios may reach 17.6% of the portfolio of assets and liabilities sensitive to interest rates, he explained. The banking system’s profitability is high, and the solvency ratio is strong, he said, adding that all these can deteriorate under certain circumstances. In fact, the Romanian banks’ profitability (13% return on equity versus 7.6% in EU) is above the EU average, and above the profitability in the real sector, the BNR official stated. The solvency ratio (22% versus 17.1% in the EU) is also above average, and the non-performing loans ratio is still small (3.7%) even if above the EU average (2.5%). However, the solvency ratio can lose 2pp from distributing dividends, another 2pp when building up provisions next year. The losses generated by adverse developments of the interests and yield curve would come on top of these two effects.
The health sector, public administration, and the energy industry are the most targeted by cyber threats in Romania, according to the National Cyber Security Directorate (DNSC) in its 2024 activity report. The health sector faces significant threats due to the large volume of sensitive data and underfunded critical infrastructure. Public administration is often the target […]
The funeral service of Romanian former president Ion Iliescu was performed on Thursday, August 7, an official mourning day in Bucharest. Among those present were family, friends, former allies, and political opponents. Those absent, namely the former president Klaus Iohannis and current president Nicusor Dan, were also notable. Ion Iliescu, Romania’s first president after the […]
The multisensory photography exhibition World Unseen has opened to the public in Brașov, central Romania, as part of its national tour. Hosted at Olimpia – The Museum of Sport and Mountain Tourism, the exhibition is open until September 14 and aims to make photography accessible to people of all abilities, including those with visual impairments […]
Romanian foreign minister Oana Țoiu began an official visit to Ukraine on Thursday, August 7, marking the first bilateral trip by a Romanian foreign minister to Kyiv since the Russian invasion in 2022. The visit signals Romania's strong and ongoing solidarity with Ukraine, the ministry said. Minister Țoiu is scheduled to hold high-level talks with […]
M Core continues to expand its Romanian portfolio with a new retail development in Bucharest. This time, the project is targeting one of the city’s most dynamic residential areas — Prelungirea Ghencea. The project, developed on a plot of approximately 51,400 sqm, will be located on Prelungirea Ghencea Street, no. 344–348, and is currently in […]
The FeminEast Association has launched the first free digital platform dedicated exclusively to financial education for women and young girls in Romania and Eastern Europe. Designed to address persistent gaps in financial literacy, the platform offers accessible, practical content tailored to the needs of schoolgirls, students, mothers, and women seeking financial independence or career changes. […]
