The big news nowadays is that emergent markets, especially Romania, are proving extremely resilient to the turmoil of the mature financial markets, with investors not withdrawing their money en-masse, as in the past, when similar credibility and liquidity crises arose, says Daniel Bouton, chairman and CEO of French Groupe Societe Generale, the majority shareholder of BRD.
"The situation is about to return to normal and I see no reason why there should be any significant effects on the capital inflows entering Romania. Unlike the previous crises when the rush for safer assets would punish emerging markets, this time the developing markets are no longer any riskier than certain categories of assets in Western Europe," Daniel Bouton told ZF.
On the other hand, Bouton believes we are at the end of a world cycle of "extremely favourable" loans.
This means a period of relatively higher financing will follow, when stricter requirements for clients will be introduced. The extent of this phenomenon remains to be seen, because it depends on the developments on the financial markets.
Societe Generale announced its exposure to the subprime market in the US was "indirect and marginal", and accounted for a "fraction" of the group's investment bank.
Bouton, one of the most influential executives in France, is on his second visit to Romania, as the French group regards BRD as one of the most important branches in the region.
Bouton (57), chairman of the French Banking Federation, has been the CEO of Societe Generale since 1993, and became chairman of the second largest banking group in France in 1997.
The competition between Societe Generale and Erste Bank on the Romanian market will be difficult, but will stimulate BRD's operations, believes Daniel Bouton.
"The difference between me and my friend Andreas Treichl (CEO of Erste Bank), is that I never get into a competition for volumes. I am mainly interested in two parameters: the quality of the services for my clients, and I am not convinced that Erste won the game on this segment in the Czech Republic, and profitability, where I would like to wish Erste good luck in Romania," Bouton states.
Andreas Treichl, CEO of Erste Bank - the majority shareholder of BCR, has recently reiterated at a conference in Bratislava that the Austrians were confident they would not have any problems in their competition with BRD- Societe Generale in Romania.
"I've seen the game Societe Generale plays in the Czech Republic, we beat them there and I expect to not have any trouble in Romania, where there is enough room on the market, with even some areas that are dramatically underserviced by banks," says Treichl.
Patrick Gelin, BRD chairman, in turn says he does not intend to take the market leader crown from BCR.
BRD will also have to continue to develop rapidly in 2008, given that it has a very important competitive edge thanks to its extensive territorial network, Daniel Bouton added.
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