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.
A group of 40 Romanian pilgrims have left Israel on Tuesday, June 17, through Egypt, and most have already reached Romania. The group of Romanians is the third that managed to leave Israel. The other two have already left the territory of the State of Israel through the Eilat-Taba border crossing into the Arab Republic […]
RCBB Gruppe, a leading company in the field of construction and site management, announces the successful completion of two major projects in Bacău County: the new school building of the “Sfântul Iosif” Catholic National College in Bacău city and the Balneo-Tourism Complex in Sărata (opening photo). Both projects were delivered on time and in full […]
Lia Savonea, currently serving as a judge at the High Court in Romania, is the only candidate for the top seat in the institution in a selection process initiated by the Superior Council of Magistracy four months before the end of the term currently held by Alina Corbu. The timing, the absence of other candidates, […]
The Romanian Court of Auditors has completed an audit of national electricity transmission operator Transelectrica (BVB: TEL) for the period 2020–2022, uncovering irregularities in salary payments and delays in infrastructure projects, Ziarul Financiar reported on June 17. According to the audit...
Turkish construction and infrastructure company CCN has been awarded the contract to build the Regional Emergency Hospital in Iași, following a re-evaluation of bids by Romania’s National Agency for Health Infrastructure Development (ANDIS),
Romania is set to see prices rise in July as several governmental measures limiting costs will be removed, while taxes will be hiked. Energy and food will be among those becoming more expensive. The fiscal measures that the new Government is expected to announce will come into effect in two stages: some starting from July […]
