Romania Financial Sector Assessment Program : Financial Intermediation

Banking financial intermediation relative to the economy is low and declining. The depthof the Romanian banking sector is lagging both in terms of deposit and loan penetration. Cross-cutting factors such as poverty, rurality and informality form a...

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Main Author:	World Bank Group
Format:	Report
Language:	English
Published:	World Bank, Washington, DC 2018
Subjects:	BANKING SERVICES NON-BANK FINANCIAL INSTITUTIONS CAPITAL MARKET STATE-OWNED BANKS CREDIT GUARANTEES FINANCIAL INFRASTRUCTURE INSOLVENCY DISPUTE RESOLUTION
Online Access:	http://documents.worldbank.org/curated/en/336941532706212912/Romania-Financial-sector-assessment-program-financial-intermediation-technical-note http://hdl.handle.net/10986/30220

id	okr-10986-30220
recordtype	oai_dc
spelling	okr-10986-302202021-05-25T09:16:58Z Romania Financial Sector Assessment Program : Financial Intermediation World Bank Group BANKING SERVICES NON-BANK FINANCIAL INSTITUTIONS CAPITAL MARKET STATE-OWNED BANKS CREDIT GUARANTEES FINANCIAL INFRASTRUCTURE INSOLVENCY DISPUTE RESOLUTION Banking financial intermediation relative to the economy is low and declining. The depthof the Romanian banking sector is lagging both in terms of deposit and loan penetration. Cross-cutting factors such as poverty, rurality and informality form a set of constraints that still persist affecting both financial inclusion and intermediation. On the demand side, credit needs remain limited due to low enterprise density, poor health of enterprises, especially micro-enterprises, relatively high number of foreign owned firms, and increasing use of other forms of financing. Furthermore, while economic growth had a positive spillover, this did not translate into a commensurate increase in corporate investment activity. On the supply side, banks have been adversely affected by high Non-Performing Loans (NPLs) and deleveraging pressures. Gaps in access to finance persist, especially for micro, small and medium-sized enterprises (MSMEs), start-ups, and in rural areas. The emergence of banks with niche market positioning could reverse the disintermediation trend, but should be aided by measures to improve the health, performance, and skills of enterprises. Macroprudential measures to protect against excessive sovereign exposures could also, at the margin, support financial intermediation. 2018-08-15T15:04:06Z 2018-08-15T15:04:06Z 2018-05 Report http://documents.worldbank.org/curated/en/336941532706212912/Romania-Financial-sector-assessment-program-financial-intermediation-technical-note http://hdl.handle.net/10986/30220 English CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo World Bank World Bank, Washington, DC Economic & Sector Work Economic & Sector Work :: Financial Sector Assessment Program Europe and Central Asia Romania
repository_type	Digital Repository
institution_category	Foreign Institution
institution	Digital Repositories
building	World Bank Open Knowledge Repository
collection	World Bank
language	English
topic	BANKING SERVICES NON-BANK FINANCIAL INSTITUTIONS CAPITAL MARKET STATE-OWNED BANKS CREDIT GUARANTEES FINANCIAL INFRASTRUCTURE INSOLVENCY DISPUTE RESOLUTION
spellingShingle	BANKING SERVICES NON-BANK FINANCIAL INSTITUTIONS CAPITAL MARKET STATE-OWNED BANKS CREDIT GUARANTEES FINANCIAL INFRASTRUCTURE INSOLVENCY DISPUTE RESOLUTION World Bank Group Romania Financial Sector Assessment Program : Financial Intermediation
geographic_facet	Europe and Central Asia Romania
description	Banking financial intermediation relative to the economy is low and declining. The depthof the Romanian banking sector is lagging both in terms of deposit and loan penetration. Cross-cutting factors such as poverty, rurality and informality form a set of constraints that still persist affecting both financial inclusion and intermediation. On the demand side, credit needs remain limited due to low enterprise density, poor health of enterprises, especially micro-enterprises, relatively high number of foreign owned firms, and increasing use of other forms of financing. Furthermore, while economic growth had a positive spillover, this did not translate into a commensurate increase in corporate investment activity. On the supply side, banks have been adversely affected by high Non-Performing Loans (NPLs) and deleveraging pressures. Gaps in access to finance persist, especially for micro, small and medium-sized enterprises (MSMEs), start-ups, and in rural areas. The emergence of banks with niche market positioning could reverse the disintermediation trend, but should be aided by measures to improve the health, performance, and skills of enterprises. Macroprudential measures to protect against excessive sovereign exposures could also, at the margin, support financial intermediation.
format	Report
author	World Bank Group
author_facet	World Bank Group
author_sort	World Bank Group
title	Romania Financial Sector Assessment Program : Financial Intermediation
title_short	Romania Financial Sector Assessment Program : Financial Intermediation
title_full	Romania Financial Sector Assessment Program : Financial Intermediation
title_fullStr	Romania Financial Sector Assessment Program : Financial Intermediation
title_full_unstemmed	Romania Financial Sector Assessment Program : Financial Intermediation
title_sort	romania financial sector assessment program : financial intermediation
publisher	World Bank, Washington, DC
publishDate	2018
url	http://documents.worldbank.org/curated/en/336941532706212912/Romania-Financial-sector-assessment-program-financial-intermediation-technical-note http://hdl.handle.net/10986/30220
_version_	1764471454579032064

Romania Financial Sector Assessment Program : Financial Intermediation

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