Bogdan Belciu, PWC Romania: The banking sector generated RON 20.6 bln to the state budget in 2012-2016

Anca Alexe 17/01/2018 | 10:45

According to Bogdan Belciu, Management Consulting partner at PWC Romania, the banking sector generated a total of RON 20.676 billion towards the state budget between 2012 and 2016 in the form of taxes and contributions, and the aggregate profitability of the banking system was of RON 2.185 billion, being profitable for 3 out of the 5 years, writes Agerpres.

In a conference organised by the Romanian Association of Banks (ARB), Belciu said that the value of social contributions brought by the banks is as high as RON 8.990 billion, which demonstrates their impact in the social sector, as these contributions are used by the state for payment of current social expenditures like pensions or unemployment. VAT payments are also significant at approximately RON 4.9 billion between 2012-2016.

According to a study by PWC Romania, the banking system made up for 4.2 percent of the aggregate GDP of Romania in the timeframe mentioned above, if the indirect and induced effects on the economy are taken into account. The banking sector directly employed around 57,887 people during the period and contributed to the hiring of another 51,221 in the rest of the economy, thus generating a total of 109,108 jobs. The number of employees in the banking industry in 2016 represents around 1.2 percent of the total 4.8 million employees in the economy, being larger than 65 percent of the other economic branches.

The banking sector paid gross salaries of RON 22.99 billion between 2012 and 2016 and generated another RON 20.23 billion when the indirect effects are taken into account. The monthly gross salary in banks in 2016 was twice larger than the national average and higher than in 90 percent of the other branches of the national economy. Furthermore, an average of 47 percent of bank employees have more than 7 years of experience in the bank where they work.

Sergiu Oprescu, ARB president, stated that during this period the consumer loans segment had a reduction in stocks, and this trend was only reversed last year. In the case of mortgages, there has been a positive growth for a long time, being the only segment that had a two-figure growth in the period.

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