Out of the top 7 players involved in the domestic banking sector just one name does not have a strong presence on the Romanian market, according to a survey conducted by UniCredit. The Central and Eastern European banking market is dominated by 7 powerful names, with these groups accounting for around 26% of the total assets.
At present, Italy's UniCredit boasts the strongest presence in the region, operating in 20 countries. Second comes the Austrian Erste group, which is followed by another Vienna-based group, Raiffeisen. The list of top players is completed by Belgium's KBC, the French Groupe, Societe Generale, the recently created Italian group, IntesaSanPaolo, and Hungary's OTP Bank.
From these companies, only Belgium's KBC does not operate a bank on the domestic market. However, KBC originally voiced an interest in the Romanian market in 2005 and participated in the privatisation processes of both BCR and CEC. As a result of the Belgians failing to acquire either of the two banks, last year KBC decided to take their first domestic step by taking over the leasing firm, Romstal Leasing.
Cheaper and easier to integrate, such an acquisition allows the Belgians to keep in touch with the domestic market. Fortis, another Belgian group, made a similar decision by taking over Global Finance, another player on the domestic leasing market.
In addition, out the top six regional groups operating in Romania, four are included among the top five players on the market. Austria's Erste leads the group, through BCR, while the domestic unit of SocGen, BRD, is positioned in second place. Raiffeisen owns the third bank in the system, while UniCredit Tiriac follows in fourth place. Only IntesaSanPaolo and OTP operate domestic units that remain small (although both groups have announced ambitious development plans). According to a survey conducted by UniCredit, foreign-held banks own 48% of the overall assets on CEE markets. Excluding the Russian, Turkish and Ukrainian markets, the weight of foreign banks is considerably stronger- of 82%.
In Romania, foreign players hold 89% of banking assets, with over 60% of assets by the top five players on the market. The biggest concentration is registered in Estonia, where foreign banks control almost all banking assets.
UniCredit, which has the strongest presence in the region, reaches assets close to 108.9bn euros, being directly or indirectly present on 20 markets. Erste holds overall assets worth 61.5bn euros, being present in seven countries in the region. Raiffeisen controls assets worth 55.9bn euros on 15 regional markets, while KBC has assets worth 49bn euros, in 11 countries. SocGen is present on 15 markets, holding 41.2bn-euro assets, while IntesaSanPaolo owns assets worth 30.1bn euros, on 10 markets. OTP Bank holds overall assets worth 28.5bn euros on 9 markets.
Top regional players
Out of the top 7 players involved in the domestic banking sector- UniCredit, Erste, Raiffeisen, KBC, SocGen, IntesaSanPaolo and OTP Bank- only one name does not have a strong presence on the Romanian market
The Belgium-based KBC does not operate any domestic banks, although originally declaring an interest in the Romanian market as early as 2005
KBC last year took over Romstal Leasing
In Romania, foreign players hold 89% of overall banking assets
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