According to World Economic Forum's Global Competitiveness Report 2017-2018, financial market development in Romania is scored 3.7 out of maximum 7.0 and ranked 88th out of 138 analysed economies, trustworthiness and confidence of financial market is scored 4.7 (42nd place).
Chart 1. Financial Market Development in Romania. Source: WEF.
Soundness of banks is scored 4.6 bringing Romania into the 79th place.
Chart 2. Soundness of Banks in Romania. Source: WEF.
Banks in Romania are mainly focused on the following areas:
National Bank of Romania
Currently there are 77 credit institutions operating in Romania.
In 2018 consolidated banking assets in Romania were 99,751.12 mln EUR. The consolidated banking assets' evolution is shown at Chart 3 below.
Chart 3. Consolidated banking assets in Romania.
Recent structural changes (2013 - 2018) of the banking sector of Romania are summarised in Table 1.
|Number of Opened Banks||1||2||0||1||0||3|
|Number of Closed Banks||1||1||3||0||0||3|
Table 1. Recent structural changes in the banking sector of Romania.
The list of the most recently opened banks in Romania is provided in Table 2.
|BNP Paribas SA Paris Sucursala Bucuresti||July 2018|
|Intesa Sanpaolo Spa Torino - Sucursala Bucuresti||July 2018|
|BNP Paribas Personal Finance S.A. Paris Sucursala Bucuresti||May 2018|
|ALIOR BANK SA VARSOVIA-SUCURSALA BUCURESTI||May 2016|
|TBI BANK EAD SOFIA - SUCURSALA BUCURESTI||May 2014|
|Veneto Banca Spa Italia Montebelluna Sucursala Bucuresti||May 2014|
|THE ROYAL BANK OF SCOTLAND PLC, EDINBURGH, - SUCURSALA ROMANIA||April 2013|
Table 2. The most recently opened banks in 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|
|Housing savings banks||2|
There are 8 branches of foreign banks from 7 different countries in Romania. Table 4 shows the number of branches grouped by the country of origin.
|Country of Origin||Number of Branches|
Deposit guarantee scheme is a financial stability mechanism implemented in many countries to protect bank depositors against the loss of their deposits in the case when a bank is unable to meet its obligations to depositors by compensating certain deposits held by depositors of the bank. This compensation is paid out from the contributions which banks have made into a deposit guarantee fund.
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 5.
Table 5. Deposit guarantee scheme in Romania.
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).
Chart 4. Deposit Rates in Romania. Source: ECB.