The old banks need to become more autonomous, as they are currently dependent on external savings, Sergiu Oprescu, president of Alpha Bank, said on Friday at the conference “The new banking order and the recovery of the economy”.
He added that external savings cannot be attracted if only the channel of the relationship between parent and subsidiary banks is used. In addition, the capital market is an area that should attract external financing, according to Sergiu Oprescu.
The chairman of Alpha Bank said, “We are in an industry that will require more and more capital, but with more risks. Credit institutions need to become more autonomous. We are dependent on external savings. The capital market is an area that should attract external finance to bring capital to companies. Increasing domestic savings and expanding banking are needed in Romania today. Non-government credit in Romania is growing at a rate of 10% per year, compared to only 1% in the euro area”.
The head of Alpha Bank said a lot of work will be needed to “re-anchor” the banking system to ensure a potential for economic growth above the European level. “We are at a time when the European regulatory framework, as a post-crisis measure, requires additional capital requirements, while yields are starting to be regulated more and more heavily, making them lower and lower,” he said. Sergiu Oprescu said that the banking system needs to identify risks at the client level in order to allocate as little capital as possible.