Word of the day: restructuring
Despite the failed attempt to keep their distressed condition behind the closed doors, same as any company seeking to stay on profit, banks have put in place broad restructuring programs. The programs were focused on cutting headcount, freezing network expansion or even shutting down some business units, renegotiation of rents or reduction of bonuses.
The biggest cost-containment programs were run by Bancpost, and ING Bank Romania, both institutions encouraging employees to take voluntary unpaid furloughs.
Banca Comerciala Romana and BRD Groupe Societe Generale, Romania’s largest banks by assets have trimmed workforce by nearly 1,000. Raiffeisen Bank announced a similar measure for 2009.
This year, employees of Credit Europe Bank have called for the support of Trade Unions Federation for Insurance and Banks (FSAB), after the bank had announced a restructuring process, in which it forced the employees to sign their resignation in order to avoid additional spending on severances.
BCR has restructured around 2,500 loans of persons who missed their monthly payments, 70% of which being represented by mortgage delinquencies. Banca Transilvania has launched a recession-proof platform which includes a loan restructuring option for small and medium-sized companies designed to help distressed companies amid a global economic turmoil.
OTP Bank Romania has adopted a more drastic measure: it restructured over 2,000 loans year to date, and started the foreclosure proceedings against borrowers who failed making their payments even two months after being restructured.
The biggest cost-containment programs were run by Bancpost, and ING Bank Romania, both institutions encouraging employees to take voluntary unpaid furloughs.
Banca Comerciala Romana and BRD Groupe Societe Generale, Romania’s largest banks by assets have trimmed workforce by nearly 1,000. Raiffeisen Bank announced a similar measure for 2009.
This year, employees of Credit Europe Bank have called for the support of Trade Unions Federation for Insurance and Banks (FSAB), after the bank had announced a restructuring process, in which it forced the employees to sign their resignation in order to avoid additional spending on severances.
BCR has restructured around 2,500 loans of persons who missed their monthly payments, 70% of which being represented by mortgage delinquencies. Banca Transilvania has launched a recession-proof platform which includes a loan restructuring option for small and medium-sized companies designed to help distressed companies amid a global economic turmoil.
OTP Bank Romania has adopted a more drastic measure: it restructured over 2,000 loans year to date, and started the foreclosure proceedings against borrowers who failed making their payments even two months after being restructured.