Romania’s banking system needs mergers and acquisitions in 2016

Mergers and acquisitions are a necessity for the banking system in Romania in 2016, said Oana Petrescu, Consulting Partner with Deloitte Central Europe. More than half of Romania’s banks are not big enough. However, the M&A projects depend on several external factors, such as the evolution of economy in Europe, the situation in Greece, and the parent banks’ comfort in making various decisions and investments, Petrescu said, reports local Economica.net. Strategically, all the banks know what to do with their portfolios, they are just waiting for the right moment, she added. Romania has room for five or six large banks, five or six medium banks and a few niche lenders, said Ahmed Hassan, country managing partner Deloitte Romania. There will be some transactions in the banking market next year, he added. Romania currently has some 40 banks, but the consolidation in this market has started, as Banca Transilvania took over Volksbank and OTP Bank bought Millennium Bank in the past year. editor@romania-insider.com