The Romanian banks could directly run brokerage operations as of this year, although the securities law enacted last year had initially set 2005 as the deadline, National Securities Commission (CNVM) sources told Ziarul Financiar.
The direct entry of the banks on the market (they are now operating through their own brokerage companies) is required by the EU norms, and it was the pressure from the EU officials that caused the deadline to be pushed forth.
The change will make a significant impact on the capital market structure, as most analysts reckon the independent brokerage companies will find it harder and harder to cope in the long run. Last year, some capital market operators were considering even 2005 to be too tight a deadline.
The brokerage companies held by banks (ING Securities Romania, Alpha Finance, BRD Securities, BT Securities) are the top players in terms of stock exchange transactions anyway, because it is easier for them to reach foreign institutional investors.
The stake here will be the individuals, who will be more readily attracted as clients by those banks offering packages comprised of loans, leasing, mutual fund shares and brokerage services.
One more thing to make life harder for brokerage companies will be the more restrictive creditworthiness conditions stipulated in the consolidated capital market law. "The European Union's message was clear: whoever wants to be on this market, has to prove it really deserves it," the quoted sources explained.
"It is true, conditions will be much more difficult to meet for independent brokers. On the other hand, their greater flexibility is their competitive edge, which may turn out to be essential in times of market crisis. Let's not forget several foreign banks (ABN, Societe Generale i.e.) have closed their brokerage firms in Romania over the last few years," an official of a foreign bank in Romania commented.
laurentiu.ispir@zf.ro
