The big news nowadays is that emergent markets, especially Romania, are proving extremely resilient to the turmoil of the mature financial markets, with investors not withdrawing their money en-masse, as in the past, when similar credibility and liquidity crises arose, says Daniel Bouton, chairman and CEO of French Groupe Societe Generale, the majority shareholder of BRD.
"The situation is about to return to normal and I see no reason why there should be any significant effects on the capital inflows entering Romania. Unlike the previous crises when the rush for safer assets would punish emerging markets, this time the developing markets are no longer any riskier than certain categories of assets in Western Europe," Daniel Bouton told ZF.
On the other hand, Bouton believes we are at the end of a world cycle of "extremely favourable" loans.
This means a period of relatively higher financing will follow, when stricter requirements for clients will be introduced. The extent of this phenomenon remains to be seen, because it depends on the developments on the financial markets.
Societe Generale announced its exposure to the subprime market in the US was "indirect and marginal", and accounted for a "fraction" of the group's investment bank.
Bouton, one of the most influential executives in France, is on his second visit to Romania, as the French group regards BRD as one of the most important branches in the region.
Bouton (57), chairman of the French Banking Federation, has been the CEO of Societe Generale since 1993, and became chairman of the second largest banking group in France in 1997.
The competition between Societe Generale and Erste Bank on the Romanian market will be difficult, but will stimulate BRD's operations, believes Daniel Bouton.
"The difference between me and my friend Andreas Treichl (CEO of Erste Bank), i
