Mr. President, now that we’re at the end of 2023, please tell us how the activity of EXIM Banca Românească has evolved this year compared to previous years.
Traian Halalai: It would be difficult and somewhat inadequate to make a comparison of our activity this year with that in any of the previous years. I say this because 2023 is basically the first year in the life of EXIM Banca Românească as a leading Romanian universal bank.
From this point of view, this year has been a very intense one for us because we are basically talking about a new bank, with a new business model, with different complexity, with a new target. Plus a new name: in May, EXIMBank became EXIM Banca Românească.
In this context, the main challenge has been integrating the retail component in order to continue fulfilling our mission to support the growth of prosperity in Romania and to strengthen our role as a growth partner, in sync with our clients’ expectations. I would say that we have successfully overcome this challenge. We’ve gone through a complex process that involved significant effort from the bank’s team. I am referring to the alignment of the internal operating mechanisms, with all their procedures and regulations, and especially the implementation of the new operational model. We are talking about a substantial amount of work, and I would therefore like to thank the team for their involvement and results.
What is the current coverage of the bank you are leading (number of branches, agencies, ATMs) and what are your development plans for 2024 and 2025?
Traian Halalai: We have an efficient and flexible model for the territorial network, with geographical coverage in county seats and in cities with high economic potential. The model is structured on our two business segments: corporate and retail. This year, we are talking about 109 territorial units: 83 Branches dedicated to individuals and microenterprises and 26 Business Centers dedicated exclusively to the corporate segment. Additionally, there are 103 ATMs, most of which are multifunctional terminals that also allow cash deposits.
As for future decisions regarding territorial presence, they will of course be taken based on the general context on the banking market and on our business strategy.
Up until its entrance on the retail market, through the takeover of Banca Românească, EXIMBANK had a different status. What’s your view of the Romanian banking market in general and what products/services could you introduce in order for EXIM Banca Românească to be perceived as a strong European bank?
Traian Halalai: The Romanian banking system is a highly dynamic one whose development is driven by macroeconomic contexts. It has demonstrated resilience and efficient risk management that have allowed it to supply the financing that was necessary to support local companies and, implicitly, the economy. EXIM Banca Românească has always been a proactive market player, aligning its strategy with macroeconomic developments and the authorities’ objectives, including through the European dimension it already possesses.
We’ve been actively involved in projects alongside similar entities in Europe and beyond, to create favorable contexts for the development of the local economy. I will give you a few examples.
In this context of international turbulence (pandemic, energy crisis, raw material price increases, war, etc.), EXIM Banca Românească acted in a coordinated manner with similar institutions in other EU Member States and quickly adapted its portfolio with products offering Romanian companies equivalent operating conditions to those of EU companies. I am particularly referring to the state aid schemes that have been implemented, such as the Financial Support Program for large companies and SMEs with a turnover of more than RON 20 million in 2019 and the state aid scheme aimed at providing liquidity and access to financing for companies facing difficulties in the context of Russia’s aggression against Ukraine.
Furthermore, EXIM Banca Românească is one of the founding members of the Three Seas Initiative Investment Fund, an instrument dedicated to investments in infrastructure in Central and Eastern Europe.
And as a final expression of our European dimension, I would just like to mention that EXIM Banca Românească is one of the key institutions supporting the process of Romania’s accession to the OECD, a country project of similar significance to those related to our EU and NATO memberships. We are the only specialized financial institution in Romania with an export promotion role, in line with the standards of the OECD Export Credit Agreement, which is officially supported.
Even though we are now a new bank, we maintain our uniqueness on the Romanian market and, independently of the specific components of a universal bank, we continue to operate in the state guarantee and insurance segment, as mandated by the Romanian state.
Online or on-site? Which way do you see banking developing in Romania?
Traian Halalai: As IT developments and investments move forward, we will of course also see a change in business architecture that will be focused on reshaping the traditional banking network. In the medium term, I believe that banking units will remain the main point of contact, but they will operate on a hybrid model, with staff for advisory services and alternative distribution channels (self-banking units, ATMs, etc.) to better cover financial service needs.
It’s harder to make predictions for the long term because just as we are now witnessing a technological evolution worthy of anticipation novels, and seeing changes taking place in the banking system that we could not have even imagined 25 years ago, things could also radically change. We will probably be talking more about artificial intelligence—or who knows what else human intelligence will create.
One year ago, we saw the founding of the Romanian Agency for Investment and Foreign Trade. Together with this institution, throughout the year, you’ve managed to promote programs/projects aimed at increasing Romania’s exports and reducing its imports. Can you provide some examples?
Traian Halalai: It is true that for more than 30 years, the bank has been actively involved in supporting and promoting the Romanian business environment, backing local companies’ projects through its specific products. As such, it has established itself in the collective memory as the “exporters’ bank,” a phrase that places us in a very niche area and that today is far outdated.
Market segmentation and the identification of the needs of new potential clients have led over time to a revision of the scope of our activity, which considerably expanded the addressability of the bank’s offer. As a result, in the corporate segment, EXIM Banca Românească can support any type of commercial company with the financial instruments at its disposal, whether it is an SME or a large company, whether it carries out international transactions or only targets the domestic market. The bank is therefore open to any type of business, with the only limiting factor in the analysis being the viability of projects.
Of course, exporters are still an important segment for us, and our fundamental objective is to continue to implement support programs that are well adapted to the needs of the business environment and aligned with the macroeconomic coordinates and objectives set by the authorities.
What are your expectations regarding the evolution of the Romanian economy in the coming years?
Traian Halalai: The Romanian economy seems to be gradually moving towards a growth model in which the role of investment will be much more important, and if this model is maintained in the longer term, the potential of the Romanian economy will gradually increase in the coming years.
This is why I believe that Romania has the assets to shape a development trajectory that’s strongly based on the idea of exploiting its geo-strategic position as a Member State of the European Union—a status that ensures access to significant resources—and as an element of stability in the Eastern European region.
I believe that in 10 years’ time, Romania will most likely be an active, developed, and strong economy, a pillar of regional stability, and a valuable business partner, alongside its international partners.
By making the most of the opportunities on hand, intensively stimulating the valuable local potential for technological development, and creating smart jobs for the new generations, we have all the prerequisites to conclude that we can talk about a strong, dynamic Romanian economy, an economy of the European and global future.
This year, the M&A market has seen spectacular developments in several economic sectors. Are you considering the possibility of EXIM Banca Românească to develop by taking over smaller banks? How many years could it take for EXIM to become one of the top three banks in Romania by assets or profitability?
Traian Halalai: There is still plenty of room for consolidation on the Romanian banking market and I believe that this will be the main trend in the coming years: the consolidation process of the banking system will continue, which will allow it to better mobilize resources to support financial intermediation in Romania.
As far as we are concerned, we are proposing an organic growth strategy by accelerating the pace of growth in financial intermediation in order to consolidate our position on the financial-banking services market as a solid credit institution that’s capable of coping with any development in the Romanian economy, with all the challenges that this entails, including prudence and responsibility. Our concern is to build a solid and healthy foundation for future growth and we are confident that we will succeed in doing so as we have managed to grow at an accelerated pace over the last 12 years, building a strong brand on the banking market.
We have proven that we have the capacity and resources to reinvent ourselves, so if economic challenges require us to do so or if opportunities arise in the market, we will remain flexible, open, and responsible.
