BT earmarks 3.5m euros for pension fund

Banca Transilvania (BT) intends to become involved in the pension funds market, after its shareholders approved the decision to include among its activities fund and pension fund assets depositary operations, as well as the distribution of pension fund units. The GM held last week also allocated 3.5 million euros for the setting up of a pension fund. Recently, the BCR and the BRD made a similar move, having already been authorised as pension fund depositaries. BT is also interested in working as an insurance broker, in providing consulting services in the insurance and pension guarantees field, and other auxiliary services involving insurance and pension guarantees. For 2007, the financial group around Banca Transilvania, which includes an insurance company, has an approved investment budget of over 48 million euros. The investments are mainly aimed at expanding the branch network by 100 from the current 367, at perfecting the card and IT system, as well as developing the companies that are members of the financial group. A sum of 15.71 million euros is allocated for the expansion of the bank network. In 2006, Banca Transilvania’s network exceeded rival Raiffeisen’s, the third largest bank on the market, and is expected to maintain its advantage with the Austrians having in turn scheduled a 100-branch expansion.