Banks in Romania, less efficient than those in Bulgaria, ECB report says

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The banks in Bulgaria have exploitation efficiency by 22% higher than those in Romania and an operational efficiency by 32% higher, whereas the Romanian banks are more efficient by 17% than those in Hungary and by 16% more operationally efficient, an European Central Bank (ECB) report, quoted by the National Bank of Romania, reds.

In Romania, the efficiency in exploitation of the 35 banks, assessed on the basis of the ratio between operational cost and income, was of 53.1% at the end of September 2018, which places the banking sector on average risk, the BNR figures reveal in the ‘report on financial stability’, the December 2018 edition.

The ratio between operations cost and income of the banks in Romania was of 54.9% in December 2017, the ECB figures read.

Higher efficiency than the bank in Romania, in the EU, had the banks in Malta, with a ratio of 40.6%, Bulgaria – 45% and those in Estonia – 46.3%, followed by those in the Czech Republic 0 47%, Lithuania – 49%, Spain – 52.6%, Portugal – 52.9% and Sweden – 54.2%.

The banking system in Bulgaria is managed by a monetary council.

“Seen by structure, the operational expenses of the banks in Romania are influenced mainly by the staff expenditures (about 47% of the total) and by administrative expenditures (44%), the share of depreciation expenses being low. The staff expenses had a relatively constant development in the past decade, being below the average level in the EU (52%, December 2017). The efficiency in exploitation, favoured by the sustainable growth of financial assets and the control of operational expenses, continue to represent a wide area for improvement,” the BNR report reads.


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