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.
Eltra Logis, one of the leading players in the niche logistics, transportation, and warehousing market, has developed its own software solution, Rapido, with a strategic investment of EUR 800,000. The company brings a scalable solution dedicated to e-commerce players to the market that increases operational efficiency, reduces costs, and improves customer experience. Eltra Logis aims […]
TenarisSilcotub, the leading Romanian producer of small-diameter seamless pipes, announces the completion of construction on its first renewable energy production facility — a 20 MW photovoltaic park, developed through a USD 21.5 million investment. The project was financed through both company funds and non-reimbursable European grants, provided via the National Recovery and Resilience Plan, Pillar […]
Chef Dragoș Bercea, the culinary experiences coordinator at Zooma – the event center of City Grill Group – has been named “Best Event Chef 2025” at the 3rd edition of the Chefi de România Gala, a landmark event for the local gastronomic industry. The award recognizes his significant contribution to the development of the fine […]
A recent survey conducted by eJobs Romania revealed that 65.6% of employers will offer benefits to their employees for the Easter holidays this year. The majority of these companies have budgeted for cash bonuses, with vouchers and gift tickets being the second most commonly offered benefit. Other popular benefits include extra days off and holiday-themed […]
Flyone, a leading aviation company in Moldova and Armenia, said it is expanding its operations in Romania. This summer, the airline will launch a new operational base at Bucharest's Henri Coandă International Airport, marking its official debut on the Romanian market. As part of its expansion strategy, Flyone will allocate two modern Airbus A320 aircraft […]
Bucharest is rapidly emerging as a key player in the hospitality sector, attracting growing attention from global industry leaders. The city boasts a vibrant lifestyle, skilled talent, and significant economic potential, positioning it as one of Europe’s top destinations for hospitality investments. An increasing number of international brands are actively exploring expansion opportunities in Romania’s […]
