Romanian banks report a loss in third quarter of 2011

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.

Source: Nineoclock