Carabulea: Now we need to find a big bank that will support Carpatica

Sibiu’s richest businessman, Ilie Carabulea, who controls 36.26% of Banca Comerciala Carpatica (BCC on the Stock Exchange), says the institution is now in a development stage where it needs the financial support and expertise of a larger bank. “Carpatica is doing well, both in terms of financial results and in terms of solvency indicators. In addition, its territorial network will allow it to boost its market share in the long run. We have done everything we could. From now on it is important that we find a large bank to support us with money and expertise,” Carabulea told ZF. He says the bank had talks with “large banks in the system” as early as last year on sealing a partnership, whilst up until 2007 he would maintain that the bank could grow on its own. Moreover, the bank’s management voiced an interest in taking a partner on board, saying it has received offers from several international entities, which have not come to fruition. Having yet to find a partner, Carabulea has changed the bank’s management, replacing president Nicolae Hoanta after eight years. Carpatica is a medium-sized bank, one of the few with Romanian capital in a Romanian banking system dominated by foreigners (over 80%). On June 30th, the Sibiu-based bank had an around 315 million-euro loan portfolio and deposits worth over 475 million euros. In the first half of the year, the bank’s profit amounted to almost 2 million euros.
Carabulea proposed to shareholders a limit on pays and other benefits for managers in the managing board, as well as no bonuses to be granted in the 2009-2010 financial year.
On November 14th, when the general meeting will take place, Carpatica shareholders will have to approve a change from the single management system to a dual one, which will see the bank led by a manager and a supervisory board. They will also decide on and elect the membership of a five-member supervisory board, at least one of whom must be independent. They will be appointed for four years, with the option of being re-elected.
“We abandoned the single management system because it was outdated and was based on the principle: ‘I do the work, I supervise, I stand to answer’. There was no objective observation, so we decided to modernise the management system. Why now? Because the apple was ripe now,” said Ilie Carabulea.