Raiffeisen Bank, the fourth largest local bank based on the assets, became the biggest player on the government securities market last year, reports local Ziarul Financiar.

In 2015, the lender ranked only fifth among the primary dealers, whereas Banca Transilvania ranked first.

In 2016, Banca Transilvania was only third on the government securities market. ING Bank remained second. BCR, the biggest local lender, was fourth, up from 7th in 2015, and BRD fell to fifth, from third place in 2015.

In the last years, banks' profits were fueled mainly by gains from trading in government securities and not from their main activity, lending.

Raiffeisen Bank recorded a profit of EUR 64 million in the first nine months of 2016, down 25% compared to the same period in 2015. The drop was related to increasing net provisions due to the giving-in-payment law, and lower net interest income.

The ranking of the top nine primary dealers is made by the Finance Ministry together with Romania’s National Bank (BNR).

editor@romania-insider.com