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.
ARTEX AG, a Liechtenstein-based company and sole shareholder of ARTEX MTF, a Lichtenstein-based regulated multilateral trading venue, has appointed Claudio Cisullo, Founder and Executive Chairman of the Swiss-based family office CC Trust Group AG, as non-executive Director, effective April 3rd, 2024. ARTEX AG was co-founded by H.S.H. Prince Wenceslas von Liechtenstein and Yassir Benjelloun-Touimi in […]
Prince Paul Phillippe of Romania, one of the country's notorious fugitives, was captured in Malta at a resort where he was on vacation. Paul of Romania has been on the run for nearly four years from the country, where he was sentenced to 3 years and 4 months in prison in the case regarding the […]
Hobița, the village of famous Romanian sculptor Constantin Brâncuși, is at the center of a new temporary exhibition at Art Safari in Bucharest, which opens on Wednesday, May 1, and will be on display until May 19. Art Safari also offers a family program during the Labor Day & Orthodox Easter mini-holiday, open daily from 12:00 […]
The first section of the Transapuseana, a road that crosses Romania's Apuseni Mountains, was recently inaugurated. The section consists of 43 kilometers of county road. The road (DJ 107I), initially known as the 'Transalpina of the Apuseni,' was later renamed Transapuseana. It is the largest investment on a county road in Romania, with a total […]
According to a report from Romania’s National Institute of Statistics, during the period 2020-2022, the proportion of Romanian companies that introduced new or improved products or business processes into the market was 8.8%, a decrease of 1.9% compared to 2018-2020. Business innovation refers to the wide range of activities that enterprises...
SD Worx, a leading European HR and payroll solutions provider, said that it completed the acquisition of Romanian Software SRL, the market leader in Romania for payroll and Human Capital Management (HCM) solutions. Romania thus becomes the 18th European country in which SD Worx has its own proprietary payroll & HR software. SD Worx announced […]
