Standard & Poor's improved Romania's banking system image

Standard&Poor, the financial evaluation agency, improve Romania’s banking system image regarding the investment risk from Group 8 to 7 and decreased Romania’s chances to suffer from an economic recession from 35-50% to 25-40%, an institution’s press release informs. The improvement reflects the overall good development rhythm and the banking system’s profitability.

Moreover, according to the press release, the new standard reflects the expansion of the banking system and the technological improvements in the sector. However, despite these improvements, the banking system’s risks are higher than those registered in other countries in the region like Bulgaria, Croatia, Hungary or Lithuania.

According to experts, this is basically generated by economic disequilibrium or by the negative effects of the international financial tensions. Plus, experts note that the banking system in Romania is still small and concentrated.

Some 50% of the market share is held by five main banks while foreign investments control some 88% from the banking capital.