Manda: It is easier to launch a bank in a time of crisis

Horia Manda, who coordinates investment funds Romanian-American Enterprise Fund (RAEF) and Balkan Accession Fund (BAF) says turning Capa Finance into a bank has to do with the need to attract funding. RAEF and BAF acquired the controlling stake in non-banking financial institution Capa Finance, which specialises in microcredits, in December 2007 and later made a 15 million-euro capital increase. This summer, another 4 million euros were added to the capital in the form of a convertible subordinated loan. "Our goal (at the time of the acquisition) was to get a banking licence after one or two years, which would significantly aid Capa Finance's development in the Romanian financial sector," said Horia Manda, Managing Partner of Axxess Capital, the Investment Manager of RAEF and BAF, in an interview with ZF. Manda believes that the current financial crisis has created opportunities because there is less competition, which allows companies to have more time to build an institution. "Some banks which intended to tap into such segments have put off their plans. This gives us the opportunity to take our time and build an institution, and when the economy returns to normal, we can grow with it. This is the principle we are basing our judgement on."