Greek banks EFG Eurobank Ergasias and Alpha Bank, both with subsidiaries in Romania, could announce their merger on Monday, according to the Wall Street Journal, quoting sourced close to the deal. After the merger, the newly created bank would also benefit from a share capital increase from a company in Qatar. The Qatar Royal family already owns a 4.5 percent stake in Alpha Bank.

Eurobank is the second largest Greek bank, while Alpha Bank, the third largest in Greece. In Romania, the merger would create the third largest player on the Romanian banking market, assets wise.

The total assets managed by Eurobank in Romania stood at EUR 5 billion at the end of the first three months of this year, while Alpha Bank has a similar volume of assets. Together, the two would leave the fourth largest bank behind, Banca Transilvania, with around EUR 5 billion in assets.

Alpha Bank's loss in Romania amounted to EUR 5.7 million in the first three months of this year, while in the same period last year it made a profit of EUR 8.1 million. Its provisions brew by 6.6 percent, to EUR 26.1 million.

Eurobank, the major shareholder in Romanian lender Bancpost, posted a loss of EUR 1.1 million in the first quarter of the year in Romania, from a profit of EUR 2.1 million during the same period in 2010. The bank has 284 retail units and 16 units for corporate clients in Romania, while Alpha Bank runs a network of around 170 units.

editor@romania-insider.com