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Romanian Banks Will Incur Overall Loss This Year, ZF Reports

Romania’s banking system will incur an overall loss this year as bad-loan costs continue to rise, Ziarul Financiar reported, citing Nicolae Cinteza, who heads the central bank’s supervision department.

Non-performing loans will probably exceed 20 percent of total lending, up from 16.8 percent at the end of June, according to the newspaper.

The central bank is asking lenders to present audited earnings for the first half of the year, so it can check the way lenders evaluate capital and make provisions for bad loans, to avoid “surprises,” ZF said.

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