Awards for Excellence 2017
The small and medium-sized enterprise segment has proved a tough nut for many Romanian banks to crack. Lack of transparency and what local bankers euphemistically call “tax management” by companies can make lending challenging. High levels of NPLs in the sector after the financial crisis have also put a dampener on credit supply to the sector.
For those that can navigate the segment, however, the rewards can be substantial – as Banca Transilvania, the winner of this year’s best bank for SMEs award, has demonstrated over the past 10 years. Ranked just 10th in Romania by total assets in 2009, the Cluj-based lender has since grown at break-neck pace to become one of the country’s two leading universal banks, second only to BCR.
Despite its meteoric rise, however, Banca Transilvania has remained true to its roots as a ‘bank for entrepreneurs’. SMEs account for nearly a third of the bank’s outstanding lending, as well as 25% of deposits and nearly 30% of revenues. Around 200,000 small firms and entrepreneurs have active accounts with Banca Transilvania, representing roughly 40% of the sector, while nearly a third of new businesses chose the bank as a financial partner.