Banks operate 231m-euro capital increases in six months

Four banks (Credit Europe, Banca Romaneasca, Millennium Bank and Bancpost) have boosted their share capitals by an overall 231 million euros since October last year, when the international financial crisis suddenly hit the Romanian market, until March, according to the latest data published by the Romanian Trade Registry (ONRC). This compares with 355 million euros in cumulated capital increases for all the banks in the system in 2008. The solidity of a bank lies in its equity, which includes share capital (considered to be the most solid means of funding), as well as other reserves, share premiums, and the result of the ongoing financial year. At the end of last year, the banks’ overall equity on the Romanian market amounted to 25.15 billion RON (6.3 billion euros), of which share capital accounted for 13.3 billion RON (3.33 billion euros), according to data from the NBR (National Bank of Romania). According to ONRC data, the most significant capital increase in the October 2008 – March 2009 period was conducted by the Turks at Credit Europe. Following the capital injection, Credit Europe NV ended up controlling 94.5% of the shares of Credit Europe Bank Romania.