Moody's outlook on the Romanian banking system is negative, as the rating agency expects that the rise of financing costs and of non-performing loans to continue to weigh on banks' medium-term profitability.
"Moody's negative outlook for the Romanian banking system expresses the rating agency's view on the likely future direction of fundamental credit conditions in the industry over the next 12 to 18 months. It does not
represent a projection of rating upgrades versus downgrades," reads a Moody's release.
On the Romanian financial market, the Moody's release did not have immediate impact. "This report does not bring novelties. These things were well-known," said a dealer of a local commercial bank. In fact, on the market there are rumours on prospective interventions of the NBR (National Bank of Romania), which is said to be buying foreign currency in order to counter the appreciation of the RON.
"Moody's expects increased credit and funding costs to continue to weigh on Romanian banks' profitability over the short-to-medium term amid the challenging economic outlook, while the level of impaired loans
is likely to remain high given their typical delayed reaction to any possible economic recovery."
Moody's outlook on the Romanian banking system is negative, as the rating agency expects that the rise of financing costs and of non-performing loans to continue to weigh on banks' medium-term profitability.
"Moody's negative outlook for the Romanian banking system expresses the rating agency's view on the likely future direction of fundamental credit conditions in the industry over the next 12 to 18 months. It does not
represent a projection of rating upgrades versus downgrades," reads a Moody's release.
On the Romanian financial market, the Moody's release did not have immediate impact. "This report does not bring noveltie
