Once a money making machine, which in 2008 made overall profits of over one billion euros, local banks are now feeling the pinch of the prolonged, 26-month economic crisis, which has rendered one fifth of loans granted in the boom period non-performing.

BCR, controlled by Austria's Erste, continues to be the largest bank in the system by assets, but was left behind by several competitors in terms of nine-month profit calculated in line with Romanian accounting standards (RAS). With the share of non-performing loans coming to nearly 17% at the end of September, BCR had provision costs that led to a RAS net profit of 74 million RON, accounting for just a third of the overall earnings reported for 2009.

BRD, the local subsidiary of French group Société Générale, remained the second-largest bank in the system in terms of assets, but reported the biggest profit on the market nine months into the year, with its 474 million-RON earnings leaving the other banks significantly behind.

Far behind the top ranker, Austria's Raiffeisen holds on to the number 2 position in terms of profit reached in 2009, although it ranks 7th in terms of assets, which encourages it to talk about steps to regain the market share lost in the past few years amid a consolidation strategy.

BCR was also left behind in terms of profit by banks such as RBS, ING and Citi, which tend to do business with major multinationals and local companies, having less exposure to SMEs and retail (the segment most affected by the crisis), and which post significant profits even in these times, after the economy lost 30 billion euros of GDP in the past two years.

Banca Transilvania, the only Romanian-controlled top-ranking bank, manages to keep up with major competitors and post a significant nine-month profit, having climbed fast from the 8th position by assets at the end of 2009