New players enter banking market

Another four European financial institutions have informed the NBR (National Bank of Romania) of their intentions to provide services directly on the Romanian market. This brings the total number of foreign players benefiting from the European “financial passport” (banks that conduct operations directly on the domestic market) to 58. Since the beginning of July, Austrian-based InvestKredit, Irish-based Anglo Irish Bank and Spanish-based Caja de Ahorros Y Monte de Piedad de Madrid have notified the NBR to this effect. Apart from the three banks mentioned, PayPal S.a.r.l., the biggest online payment processor worldwide, submitted its notification to the NBR in July. According to the notification, PayPal intends to attract deposits and other reimbursable funds, as well as grant credits and also provide means of payment. PayPal officials announced their entry onto the market as early as this spring, with an intention to sell payment services. The launch of PayPal services enables Romanians to buy products or services from stores/international service suppliers which do not accept payments from Romania, but have agreements with PayPal. According to its notification, Caja Madrid, the fourth largest player on the Spanish market, will conduct most of the activities normally permitted, apart from renting safe deposit boxes.