Romania's privatization starts to pay off

Foreign banks are pushing the sector forward even as the rewards come in. The capital market is also showing signs of life but would benefit from more determined decision-making. The lure of the Romanian banking sector is easily explained. Domestic demand has been booming as a result of rising incom...

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Bibliographic Details
Published in:Euromoney 2006-09, p.1
Main Author: Neuhof, Florian
Format: Article
Language:English
Subjects:
Bank acquisitions & mergers
Banking industry
Capital markets
Central banks
Consumption
Corporate governance
Economic growth
Foreign business
Foreign investment
Industrywide conditions
Loans
Market shares
Privatization
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Summary:Foreign banks are pushing the sector forward even as the rewards come in. The capital market is also showing signs of life but would benefit from more determined decision-making. The lure of the Romanian banking sector is easily explained. Domestic demand has been booming as a result of rising incomes. As GDP per capita has grown from $1,821 to $5,231 between 2001 and 2005, retail lending has proved to be the area of most dynamic growth. Economic growth and the resulting rise in consumption, up 9% last year, have increased the demand for credit. Credit growth in Romania was 166% between 2000 and 2004, according to the IMF, a remarkable figure even for the high growth environment in central and eastern Europe. Emphasis has shifted from corporate loans to retail since 2003, when retail loans grew by 43%.
ISSN:0014-2433