Van Groningen: Bank density nears Eurozone level

The density of banking branches in urban areas in Romania is close to the level registered in the most developed EU countries, but the majority of rural areas are still without banks, says Steven van Groningen, President of Raiffeisen Bank. According to information recently presented at a conference with investors organised by Raiffeisen International, there were around 4,000 inhabitants per banking branch last year in Romania, with the banking system numbering 5,482 offices and subsidiaries. A year ago, there were around 4,600 inhabitants per office, after the density of banking branches registered a rapid increase, given that credit institutions opened over 1,000 offices and branches in a single year. The Romanian banking system thus left behind several states in the region, such as Russia, Hungary, the Czech Republic and Slovakia, however the branch density remains lower than in Poland. In EU countries, such as the Netherlands and Ireland, the ratio is of over 4,000 inhabitants per banking subsidiary, but for most countries in the Eurozone, this level stands at around 2,000 or under 2,000 inhabitants per branch.