Quality of bank assets in Romania keeps deteriorating at steady pace in July

By bne IntelliNews October 4, 2013

The official NPL ratio reported by Romania’s central bank increased to 20.93% at the end of July from 20.3% a month earlier, while the cost of provisioning kept rising under both IFRS and RAS calculations at rates comparable to those seen in the past 12 months – according to our calculations based on central bank data.

The annual rise of NPL (non-performing loans) accelerated slightly to 3.63% at end-July from 3.54% a month earlier.

The stock of RAS prudential adjustments [calculated only for prudential purposes] increased by 22.5% y/y to RON 41.0bn [EUR 10.1bn] at the end of July. Prudential provisioning cost calculated under the RAS system [but not enforced under fiscal procedures] increased to RON 7,775mn - or 3.9% of the average bank exposure* in the past 12 months ending July vs. 3.7% z month earlier.

The IFRS [fiscal] provisioning cost, used for fiscal purposes, was RON 7,126mn – or 3.4% of the average exposure. The stock of IFRS provisions [adjustments for impairment] was RON 33.15bn [EUR 7.53bn] at the end of July. This was 15.9% of the banks’ exposure at the end of July – up from 15.7% a month earlier and 12.1% a year earlier.

* loans extended and sums placed

Related Articles

Almaty cost of living lowest among major cities

Kazakhstan’s largest city and business centre Almaty has dropped to last place on the Economist Intelligence Unit’s bi-annual ranking of the ... more

Bucharest urges local government to borrow from banks despite warnings from IMF and EC

Romania’s local administration can co-finance the EU-funded projects from bank loans at interest rates lower than the financing cost of the Treasury, Romania’s central government reportedly ... more

IPO of Romanian telco RCS&RDS reportedly planned for May

A group of shareholders of Romanian diversified telecoms group RCS&RDS want to sell 20%-30% of the group’s shares in an IPO, Ziarul Financiar daily reported. The IPO is expected to take place ... more

Register here to continue reading this article and 2 more for free or purchase 12 months full website access including the bne Magazine for just $119/year.

Already a subscriber or registered - click here to recover access.

If you a IntelliNews Pro user - click here to login.

Thank you. Please complete your registration by confirming your email address.
A confirmation email has been sent to the email address you provided.

To continue viewing our content you need to complete the registration process.

Please look for an email that was sent to with the subject line "Confirmation bne IntelliNews access". This email will have instructions on how to complete registration process. Please check in your "Junk" folder in case this communication was misdirected in your email system.

Already a subscriber or registered - click here to recover access.

If you a IntelliNews Pro user - click here to login.

If you have any questions please contact us at sales@intellinews.com

Subscribe to bne IntelliNews website and magazine

Subscribe to bne IntelliNews website and monthly magazine, the leading source of business, economic and financial news and commentary in emerging markets.

Your subscription includes:
  • Full access to the bne content daily news and features on the website
  • Newsletters direct to your mailbox
  • Print and digital subscription to the monthly bne magazine
  • Digital subscription to the weekly bne newspaper

Already a subscriber or registered - click here to recover access.

If you a IntelliNews Pro user - click here to login.

bne IntelliNews
$119 per year

All prices are in US dollars net of applicable taxes.

If you have any questions please contact us at sales@intellinews.com

Register for free to read bne IntelliNews Magazine. You'll receive a free digital subscription.

Already a subscriber or registered - click here to recover access.

If you a IntelliNews Pro user - click here to login.

Thank you. Please complete your registration by confirming your email address.
A confirmation email has been sent to the email address you provided.

IntelliNews Pro offers daily news updates delivered to your inbox and in-depth data reports.
Get the emerging markets newswire that financial professionals trust.

"No day starts for my team without IntelliNews Pro" — UBS

Thank-you for requesting an IntelliNews Pro trial. Our team will be in contact with you shortly.

Dismiss