Romania is a country in Southeastern Europe, a member of the European Union since 2007.
Romania is an upper-middle income country with main industries being electric machinery and equipment, auto assembly, textiles and footwear, light machinery, metallurgy, chemicals, food processing, petroleum refining, mining, timber, construction materials.
The banking sector of Romania is highly concentrated and is dominated by foreign-controlled banks. Banks in Romania operate as universal banks.
|Population (2016)||19 759 968 (-0.01%)|
|EU Status||member since 2007|
|National Currency||RON (Romanian new leu)|
|Exchange Rate (2017-02-17)||1 EUR = 4.5223 RON|
|Nominal GDP (2015)||160.4 bln EUR (+0.06%)|
|Nominal GDP per Capita (2015)||8 100 EUR (+0.06%)|
|Real GDP Growth (2015)||3.9 % (2014: 3.1 %)|
|CPI, MoM (Dec 2016)||0.3 % (Nov 2016: 0.0 %)|
|CPI, YoY (Dec 2016)||-0.1 % (Nov 2016: -0.2 %)|
|CPI, Year Average (2016)||-1.1 % (2015: -0.4 %)|
|Unemployment Rate (2015)||6.8 % (2014: 6.7 %)|
|Government Bond Yield (Dec 2016)||3.73 % (Nov 2016: 3.56 %)|
|Credit Ratings (as of Sep 2016)|
|Fitch||BBB-||good credit quality, outlook stable|
|Moody's||Baa3||lower medium grade, outlook positive|
|S&P||BBB-||lower medium grade|
|Double Taxation Agreements||80 signed agreements|
|Exchange on Request||1 signed agreements|
|Automatic Exchange||starts in September 2017|
|FATCA||IGA in effect since 28 May 2015, Model 1|
|Financial Market Development||3.7 (max 7.0)||rank: 86th out of 138 countries|
|Banks' Soundness||4.4 (max 7.0)||rank: 90th out of 138 countries|
|Deposit Guarantee Scheme|
|Maximum Protected Amount||100 000 EUR|
|Country Ceiling for Deposits|
|Local Currency (Romanian new leu)||A3||upper medium grade|
|Foreign Currency||Baa3||lower medium grade|
|Deposit Rates (Nov 2016, RON)||0.90 % (Oct 2016: 0.92 %)|
|Banking Sector Structure|
|Number of Banks||39|
|Recent Changes (2016)||new banks: 1, closed banks: 0|
|Consolidated Assets (2015)||84 545.60 mln EUR (+2.67%)|
|Banca Comerciala Romana (Erste Bank)||Raiffeisen Bank|
|BRD (Societe Generale)||UniCredit|
|Banca Transilvania||Volksbank Romania|
|List of Banks in Romania|
During the last 9 years EURRON exchange rate was within the range 3.6798 - 4.5800, reaching its maximum in Jul 2012 and falling to its minimum in Oct 2008.
According to Eurostat, nominal GDP of Romania in 2015 was 160.4 bln EUR.
Romania outperforms the European Union in terms of real GDP growth with the average annual differential coming to 1.6% over the past 10 years (2005 - 2015). In 2015 real GDP growth was 3.9% which was above the Euro Area average (1.6%) and above the European Union average (1.9%). Real GDP growth in 2016 - 2021 are IMF's estimates.
In 2015, nominal GDP per capita in Romania was 8 100 EUR.
Romania has a below-average level of wealth in terms of per-capita GDP at purchasing power parity (PPP); this economic welfare indicator has, on average, fell behind that of the European Union by -38.6% over the past 10 years (2005 - 2015). GDP per capita at PPP in 2016 - 2021 are IMF's estimates.
According to Eurostat, inflation rate in Romania in 2016 expressed as annual percentages of average consumer prices was -1.1% which was below the Euro Area average (0.2%) and below the European Union average (0.3%). Inflation rates in 2017 - 2021 are IMF's estimates.
Double Taxation Agreement (DTA) is an agreement between two or more countries for the avoidance of double taxation.
Romania signed DTAs which already came info force with the following jurisdictions (for agreements which came into force after 01 January 2013 the date of coming into force is given in brackets):
There are also several agreements between Romania and other jurisdictions which were signed but haven't yet come into force (for agreements signed after after 01 January 2013 of signing the agreement is given in brackets):
There are 3 ways for jusrisdictions to exchange information on tax matters:
Spontaneous exchange of information is provision of information that is forseeably relevant to another party without a request being previously sent.
Tax Information Exchange Agreements (TIEAs) enable exchange of information on request relating to a specific tax investigation, either criminal or civil.
Romania signed TIEAs which already came info force with the following jurisdictions (for agreements which came into force after 01 January 2013 the date of coming into force is given in brackets):
Automatic information exchange allows jurisdictions to exchange information automatically, without having a specific tax investigation.
Romania signed the automatic information exchange agreement on 29 October 2014 and committed to start the automatic information exchange in September 2017.
Foreign Account Tax Compliance Act (FATCA) which became law in the United States in March 2010, focuses on reporting made by foreign financial institutions about financial accounts held by US taxpayers or foreign entities in which US taxpayers hold a substantial ownership interest. The FATCA-reporting is facilitated by Intergovernmental Agreements (IGAs).
Romania has FATCA agreement with the U.S. in effect since 28 May 2015 (Intergovernmental Agreement Model 1). Financial institutions operating in Romania are required to identify U.S. taxpayers by January 1, 2017 and to report the information for 2017 and the subsequent years. The agreement is reciprocal: Romanian financial accounts hold in U.S. financial institutions will be reported to Romanian authorities.
FATCA and European countries
According to World Economic Forum's Global Competitiveness Report 2016-2017, financial market development in Romania is scored 3.7 out of maximum 7.0 and ranked 86th out of 138 analysed economies. Soundness of banks is scored 4.4 bringing Romania into the 90th place, trustworthiness and confidence of financial market is scored 4.6 (43rd place).
Deposit Guarantee Schemes compensate certain deposits held by depositors of a bank that becomes unable to meet its obligations.
From a depositor's point of view it is important to know:
All these details about deposit guarantee scheme in Romania are summarised in Table 1.
|Scheme Participants||all credit institutions operating in Romania, branches of non-EU banks, branches of Romanian banks abroad|
|Scheme Exemptions||branches of EU-banks (covered by their home countries)|
|Eligible Depositors||natural persons, legal entities|
|Covered Accounts||any credit balance, including due interest|
|Maximum Protected Amount||100 000 EUR|
|Paid In Currency||RON|
Table 1. Deposit guarantee scheme in Romania.
Deposit Guarantee Schemes in Europe
Moody's country ceilings for deposits specify the highest rating that can be assigned to local- or foreign- currency denominated deposit obligations of a bank or other deposit taking institution domiciled within that country.
Local currency (Romanian new leu) deposit ceiling for Romania is set to A3 (upper medium grade), foreign currency deposit ceiling is Baa3 (lower medium grade).
Currently there are 39 credit institutions operating in Romania.
Recent structural changes (2013 - 2016) of the banking sector of Romania are summarised in Table 2.
|Number of Opened Banks||1||2||0||1|
|Number of Closed Banks||1||1||3||0|
Table 2. Recent structural changes in the banking sector of Romania.
All the credit institutions operating in Romania can be classified into several categories. Table 3 summarises the number of banks in each category.
|Category||Number of Banks|
|Branches of foreign banks||8|
The list of the most recently opened banks in Romania is provided in Table 4.
|ALIOR BANK SA VARSOVIA-SUCURSALA BUCURESTI (new)||May 2016|
|TBI Bank EAD Sofia - Sucursala Bucuresti (new)||May 2014|
|Veneto Banca Scpa Italia Montebelluna Sucursala Bucuresti (new)||May 2014|
|THE ROYAL BANK OF SCOTLAND PLC, EDINBURGH, - SUCURSALA ROMANIA (closed)||April 2013|
Table 4. The most recently opened banks in Romania.
There are 8 branches of foreign banks from 8 different countries in Romania. Table 5 shows the number of branches grouped by the country of origin.
|Country of Origin||Number of Branches|