BIS reporting banks' exposure to Romania shrinks 8% in 2012.

By bne IntelliNews June 3, 2013

The exposure of BIS reporting banks to the Romanian banking system decreased by 8% y/y to USD 30.1bn at the end of 2012 but still accounts for 25% of the total assets of the financial institutions [excluding the central bank] in the country, according to our calculations based on BIS reporting central bank data.

The outflows generated by the BIS reporting banks withdrawing funds from the country, adjusted for exchange rate variations, were USD 3.26bn in 2012 – accounting for 10% of their exposure at the end of 2011. The decrease in exposure differs from the volume of outflows because of the exchange rate adjustments.

The outflows from the local banking system were slightly milder than the average outflow in Emerging Europe countries*, where they accounted for 12% of the total exposure at end-2011. Steepest outflows were reported in Hungary [USD 10.3bn, 30% of exposure at end-2011], while the sole country that witnessed inflows was Slovakia [USD 4.7bn or 67% of the exposure at end-2011].

For the whole period of 2009-2012, BIS reporting banks reduced their exposure to Romanian banking system by 32% from USD 44.3bn at the end of 2008 to USD 30.1bn at the end of 2012. The exchange rate adjusted outflows were USD 12.2bn for the whole four-year period – or 27% of their exposure at the end of 2008. At the end of 2008, the assets held in Romanian banks by BIS reporting banks [meaning their exposure] accounted for 34.4% of the local financial institutions’ assets.

In Q4/2012 alone, the outflows generated by BIS reporting banks withdrawing money from the Romanian banking system reached USD 1.66bn – the third largest outflow in the deleveraging period that started in Q1/2009. The local banking system had previously witnessed net inflows from BIS reporting banks in Q3/2012 after five consecutive quarters of outflows.

* Albania, Belarus, Bosnia, Bulgaria, Croatia, the Czech Republic, Estonia, Hungary, Latvia, Lithuania, Macedonia, Moldova, Montenegro, Poland, Romania, Serbia, Slovakia, Slovenia.

USD mn XR-adj change in BIS reporting banks' exposure to individual countries [assets]    
  2007 2008 2009 2010 2011 2012
Albania 343.2 -128.6 88.3 53.5 171.0 -163.3
Belarus 708.3 480.4 -525.0 855.8 110.6 -249.2
Bosnia and Herzegovina 871.6 315.3 -143.9 -492.6 -457.7 -245.4
Bulgaria 4,150.9 5,225.4 -905.5 -648.6 -1,844.0 -265.5
Croatia 5,071.9 -2,115.3 1,073.5 -1,860.5 1,136.4 -3,292.5
Czech Republic 7,852.7 -884.4 -4,395.4 3,269.1 -689.1 -4,177.7
Estonia 4,269.8 1,539.6 -1,262.2 -2,060.0 -3,493.7 -1,180.7
Hungary 7,021.7 9,737.5 -4,109.8 -4,319.6 -7,467.8 -10,311.0
Latvia 4,714.9 2,679.3 -3,287.5 -2,112.2 -1,465.8 -1,165.1
Lithuania 4,550.2 3,405.6 -1,969.0 -2,711.2 40.9 -1,239.0
Macedonia 63.3 2.9 79.3 103.9 235.4 -42.0
Moldova 159.2 171.7 -81.1 -108.2 -86.5 -38.3
Montenegro 501.3 359.3 -17.8 -95.8 -380.5 -106.0
Poland 21,326.1 10,938.5 2,618.0 4,546.1 -828.9 -2,286.7
Romania 13,506.7 9,301.5 -10,315.4 2,875.6 -1,463.7 -3,259.2
Serbia -258.5 1,006.6 1,156.0 339.4 68.4 -1,253.0
Slovakia 5,166.4 4,234.5 -9,227.9 1,446.8 -60.5 4,724.2
Slovenia 7,418.9 3,264.7 -4,145.2 -561.3 -2,136.9 -4,717.9
             
total emerging Europe 87,095.4 49,663.2 -35,459.1 -1,533.5 -18,783.3 -29,105.1
Russia 34,332.6 -2,361.1 -24,312.5 9,744.3 7,556.2 -830.2
Turkey 6,023.0 2,378.8 -1,554.7 23,667.3 5,737.2 9,239.3
Ukraine 11,587.2 5,156.3 -8,192.8 -181.2 -4,335.5 -3,817.3
Source: BIS by CEIC, IntelliNews          
USD mn exposure of BIS-reporting banks to individual countries [eop, assets]    
  2007 2008 2009 2010 2011 2012
Albania 475 314 406 451 599 518
Belarus 1,700 2,123 1,639 2,393 2,438 2,217
Bosnia and Herzegovina 3,374 3,542 3,522 2,864 2,353 2,153
Bulgaria 8,773 13,216 12,578 11,210 9,257 9,149
Croatia 22,360 19,821 21,549 18,922 19,716 17,962
Czech Republic 26,829 24,297 20,299 23,268 21,527 19,263
Estonia 15,137 16,030 15,164 12,252 8,585 7,525
Hungary 39,276 49,802 46,963 41,766 34,021 24,123
Latvia 16,112 17,989 15,152 12,012 10,351 9,308
Lithuania 12,489 15,168 13,732 10,147 9,905 8,853
Macedonia 144 138 219 586 792 802
Moldova 408 551 473 353 264 305
Montenegro 632 944 956 818 438 339
Poland 49,449 56,703 60,771 65,857 64,828 64,381
Romania 36,444 44,343 35,025 34,775 32,682 30,110
Serbia 3,761 4,993 6,239 6,224 6,127 5,358
Slovakia 11,790 15,733 6,251 7,447 7,090 12,042
Slovenia 21,587 21,921 18,484 15,571 12,635 9,014
             
emerging Europe 270,265 307,314 279,016 266,465 243,009 222,904
Russia 91,712 89,114 65,459 73,695 81,198 85,770
Turkey 41,046 42,413 41,454 70,450 74,411 83,911
Ukraine 19,781 25,280 17,265 16,700 12,332 9,153
Source: BIS by CEIC, IntelliNews            

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