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[5 Mar 2010 | No Comment | ]

Asset Rebalancing Underway  The rapid expansion of the Romanian  banking sector has come to an end, with  most recent data showing a marked  slowdown in asset growth. A major  theme from 2010 will be asset  rebalancing, which has already started to  play out as Romanian banks buy up  government debt. While we believe  systemic risks are more limited in  Romania’s banking sector than elsewhere  in Central and Eastern Europe, we  nonetheless highlight the risks from  Greece’s financial crisis, which could  affect liquidity across …