Speaking at the presentation of Erste Group’s financial results for the first half of 2019, Treichl also said the decrease in the share held by the local banking system in the country’s gross domestic product (GDP) is not a problem, as the economy grows at a higher rate than the banking system.
The banking system saw a decline because banks set up very large provisions due to non-performing loans (NPLs), Treichl pointed out.
Banks in Romania are among the most profitable in Europe and the loan-to-deposit ratio is subunitary.
Banks in Romania focus more on urban areas and rural areas are left without financial coverage.