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Romanian banking system’s profitability, double than the EU average

By Anca Bernovici
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Romanian banking system profitability stood at 13.2 percent at the end of last year, double than the EU average recorded in September and provisioning coverage of NPLs stood well above the European average, at 58 percent, compared to about 44 percent, according to recent central bank analysis.

Thus, ROE (return on assets) profitability indicator rose by 5.6 points in the last quarter of last year, from 7.6 percent to 13.2 percent, ranking the best caution interval in risk picture.

BNR analysis on the Romanian banking system was based on data reported by the banks individually and similar to quarterly analysis of the European Banking Authority (EBA).

Most of the indicators fit into the best caution interval, both in September 2015 and December 2015, the performance being above European average that is falling to “intermediate” with almost all indicators. NPLs recorded a significant decline in the last quarter of last year, by 2.1 percentage points, and by 1.1 percentage points for loans rate with restructuring measures.

However, these vulnerabilities are diminished by the third indicator for analysing the asset quality and respectively the degree of bad loans provisioning, placing the Romanian banking system on the most prudent value range of 58 percent, well above the European average, to about 44 percent.

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Anca Bernovici

Anca Bernovici

I started my way in life with the intention to pursue a teaching career. But, after graduating from the Faculty of Letters – the University of Bucharest in 2004, my first job as a reporter at one of the leading newspapers in Romania changed my perspective. I have specialized in communication and communication campaigns, following the Master's courses at the Faculty of Journalism and Communication Studies (FJSC), attending a BBC Communications scholarship.
I’ve represented several important publications in Romania as business journalist, being accredited in the finance and banking field. In 2015, I had the opportunity to interview the International Monetary Fund (IMF) Mission Chief for Romania, Andrea Schaechter. As business journalist, I also had the opportunity to interview ministers for Economics and Commercial
Affairs offices within different embassies in Romania or officials of large companies investing on the domestic market.
After almost 15 years of journalism, I still want to explore new ways, to inform and stay updated. That’s why The Romania Journal project fits me so well.
Today I describe myself as a passionate about the history of world culture, having a PhD in Hebrew Culture and Civilization, after a scholarship at the University of Haifa International School, as a language addict, an environmental activist, pet lover and traveler.

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