Romanian banking system reported a loss in third quarter of 2011 in the amount of RON 860 mio (almost EUR 200 mio), after it reported a profit in the first half of 2011 in the amount of RON 94.5 mio. The result in the first three quarters of 2011 is a loss that is 62 per cent higher than the loss in the same period of 2010, which was the first year after 1999, when banks cumulatively reported a loss. As reported by Mediafax, the reason for losses were increasing provisions for doubtful loans that exceeded the historical high of RON 30 billion (in Q3 increased by RON 3 billion). These results and consequently cost optimisation caused the Romanian banking network to shrink. In the third quarter banks closed 40 units, in the first nine months of 2011 100 units.