„I think that some banks solvency will be reduced on the backdrop of a raised non¬performance in the lending field. However, I do not think we will have bankruptcies in 2010, in Romania, but the lack of performance will be on the rise. I think that the banking system will conclude 2009 on profit”, said Cinteza.
He appreciated that the highest risk for the commercial banks is represented by the non¬performing loans granted to customers in the public sector, on the backdrop of the financial crisis.
When the loans were granted, these customers were viewed as having most secure incomes and were sought after, but now they present the highest risk due to wage and job cuts in the public system. Nicolae Cinteza warned that the „first six months in 2010 will be decisive for the Romanian banking system”.
Provisions at the level of Romania’s banking system were up to 12.967 million lei on Sept. 30 as against 3.642 million lei on Dec. 31, 2007, pointed out Nicolae Cinteza in a financial banking seminar. According to Romania’s National Bank norms, the commercial banks have to set up provisions, amounts destined to cover risks the potential losses generate by loan portfolio deterioration.
The top five foreign banks in Romania concentrate assets of 175.2 billion lei, loans of 126.2 billion lei, own capitals of 13.2 billion lei and deposits of 112.2 billion lei.
Nicolae Cinteza took part in a financial banking seminar organized by BNR, Alpha Bank and the Romanian Banks Association.