“I think the banking system is robust and active. However, considering that the active population is of only 6 million people, I believe there are too many banks,” Hassiotis said at the 2013 ZF Bankers Summit on Wednesday.
Henk Paardekooper, chief executive of Royal Bank of Scotland Romania, said in turn that the local banking system is overpopulated and that lenders should think about a change in strategy.
“I think too many banks are doing the exact same things and this is something that should change in the future,” Paardekooper told the summit. “The system needs a change in strategy and it’s concerning that we don’t see any changes at the moment.”
Paardekooper said the Romanian banking system, although stable, is not likely to see many new additions in the coming period.
“It’s not a good moment and the economic climate wouldn’t allow for such an initiative. Very few banks are willing to tap new markets, given the pace of the changes,” he said.
On the other hand, the local market is not at risk of losing its current players either, said Hassiotis.
He said neither National Bank of Greece, nor Eurobank are considering selling their assets in eastern Europe.
“Any information regarding a possible sale in the region is nothing but speculation. We are not preparing to sale anything,” Hassiotis said.
He said the National Bank of Greece and Eurobank will continue to operate under separate names in Greece. National Bank of Greece earlier this year acquired 85% in rival Eurobank.
As to the Romanian operations of the Greek banks, Hassiotis said he is drafting a three-year business plan aimed at increasing the lenders’ market share.
“We want to prove that the local operations have potential.”
Hassiotis said household lending in Romania is starting to recover, with both the consumer and mortgage sectors showing positive signs.