As Romania bumps its way toward EU membership in 2007, its citizens can at least be assured of one thing: a banking market that is acquiring a new pitch of sophistication and breadth. For the man on the Bucharest omnibus, this means more ATMs and cheaper loans. But for banks, increasing average salaries, consumer expectations and business confidence also spells opportunity.
While the market is making room for one new player – HVB Bank, which acquired a 50.1% share in Banca Tiriac (founded and part-owned by former tennis coach supremo Ion Tiriac) – autumn 2005 will see the result of bidding for the two last major public sector stakes in Romanian banking. This will put more than 90% of banking assets into foreign private hands, and accelerate the consolidation process.
