Austrian banks reduce exposure to Romania

The data on the international banking market provided by the Bank for International Settlements, also called “the bank for central banks”, point to a reduction in European banks’ position to Romania by a collective €3.5 billion, a massive foreign capital flight from the country led by Austrian banks.

At the end of June 2009, Austrian banks had €30.1 billion exposure to Romania.

European’s cross-border exposure to Romania stood at €77.1 billion at the end of September last year, around 95.78% of Romania’s total foreign money, at roughly the same level as in March 2009. European banks’ exposure to the country stood at €80.62 billion in the second quarter last year.

Foreign banks’ exposure to Romania decreased by €3.72 billion between July and September 2009, to €80.5 billion.

Ranking second by their exposure to Romania are the French banks with €10.67 billion at the end of third quarter 2009, which indicates a reduction in their position by €530 million from end-March.

Italian banks rank third, with €8.98 billion exposure at the end of September, €440 million below Q209 levels.

According to BIS data, Dutch banks have reduced their position in the country by only €70 million in the third quarter 2009, from €6.85 billion to €6.78 billion.