Last year the overall assets in the Romanian banking system rose by just 3.5% - the lowest increase in the last decade. The economic crisis also took its toll on the balance sheets of banks, which had to boost provisions and even remove loans from their balance sheets because they knew they would never recoup them.
As of December 31st 2010 banks' assets amounted to 342 billion lei (80 billion euros), with BCR and BRD vying for the top position, just as 10 years ago, and being followed by a whole range of banks whose assets were cut in half.
Last year, BCR managed to gain market share, after four years of decline, while BRD lost ground because it adopted an extremely cautious policy, no longer willing to take risks in an economy affected by recession. This policy imposed by the risk-averse new management, has borne fruit as far as non-performing loans are concerned, but has also entailed losing clients with big businesses.
BCR, on the other hand, has been very aggressive on the corporate segment in over the last year, taking customers from other banks by being more risk-friendly.
In terms of profit, however, BRD fares significantly better than BCR, reporting 501 million lei in income, which means its assets fetch more profit despite being smaller.
Raiffeisen climbed to the third position, replacing Volksbank, which lost significant ground, falling to the eighth position. Breathing down Raiffeisen's neck is CEC, the state-held bank that has been steadily gaining market share over the course of last year.
Next in the top ten ranking are Banca Transilvania, Alpha Bank and UniCredit, with Bancpost and ING on the bottom two positions.
The top-ten banks in the system account for 78% of its assets, proving how concentrated the Romanian market is.
The entire banking system posted a 304 million-lei loss last year, compared
