Netherlands' ING was the first foreign entity to enter theRomanian financial market in 1994 and it has so far expandedorganically, ranking tenth in terms of assets.
ING does not regret its decision of 2002 of not acquiring BCR,which was state-owned at that time, even though such a move wouldhave allowed it to rise to the top of the Romanian banking system,says Ralph Hamers, the one who was running the domestic subsidiaryof the Dutch bank then, and who was promoted to run the group'swholesale unit in the early 2007.
"BCR would have made us attain some strategic targets faster,namely we would have entered the ranking of the five biggestplayers right on the leading position. On the other hand, by givingup this acquisition, we had the opportunity of making greenfieldinvestments along all business lines. We haven't done this on anyother market," Hamers told ZF in an interview.
ING explained it had three main reasons to withdraw from therace for BCR: the difficult global context, the fledgling Romanianretail market and a certain time pressure during the privatisationprocess.
Hamers states that had it bought BCR, ING would not have had thechance of developing its own business models, such as theSelf'Banking one used for expansion on retail. "These are models webelieve in, these are the future," he says.
Romania is one of the four markets, besides the Netherlands,Belgium and Poland, where ING is present with all its operations,from wholesale and retail banking to life insurance, pensions,asset management or leasing.
"Organic growth is more solid and easier to manage. In the caseof an acquisition, one does not know what one is buying, but wewould have surely gained market share," says Misu Negritoiu, who in2006 became the first Romanian the Dutch appointed at the helm ofthe Romanian subsidiary, opened in 1994.
ING's strategic goal is to be a top five player on the Romanianmarket and the Dutch have already come to hold this position oncertain market segments.
In late 2008, ING had 2.7bn-euro assets, placing it on the tenthposition in the system, with a 3.5% share.
"Romania will always have at least five large banks, the marketcan accommodate them. We now have the capacity to boost our marketshare without an acquisition," Negritoiu says.
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