Cost of a crisis year in banking industry: 4,200 layoffs and over 200 branches closed

More than 4,200 positions wiped out and 211 subsidiaries closed, this is the cost of the banking system's adjustment to the lending market decline starting 2009, when the crisis fallout began being felt domestically. Last year, banks were still able to support their revenues from trading operations, which benefited from the numerous bouts of high RON/euro exchange rate and interest rate volatility. Things have changed in 2010, when the first quarter brought substantial declines in fee income, with bankers now counting on interest margin gains. Thus, in the first quarter, 84 branches were closed, and more than 500 people left the industry. Nevertheless, the banking system has not come to undergo a dramatic adjustment process in terms of territorial branches, or personnel. "Banking is a business that relies a lot on confidence, so that banks refrain themselves from brutal moves to cut the number of branches and employees so as not to issue negative signals on the market. Market consolidation will probably be achieved from some point on through mergers and acquisitions, because it is clear that on a market that is not growing any more, the number of banks is too high," comments a banker.