BCR Takes Over BCR Securities Business

Banca Comerciala Romana (the Romanian Commercial Bank - BCR) will take over all the business and operations of BCR Securities as shareholders yesterday decided to dissolve and liquidate the brokerage firm.

"BCR was accepted as a participant in the trading system of the Bucharest Stock Exchange as early as February 2008, so the operations that were performed by BCR Securities until such time have been performed by the Trading Department of BCR ever since," said Valerian Ionescu, Head of the Trading Department of BCR.

The existing customers of BCR Securities will be taken over by the dedicated department of BCR and receive a complex offer of products and services, Ionescu added.

BCR in April bought almost the entire stake held by BCR Securities in the Bucharest Stock Exchange (BSE), this being a first indication that the bank was planning to close the brokerage firm. Specifically, BCR paid 3.05 million RON for 113,256 shares in the Bucharest Stock Exchange, thus securing control over approximately 1.4 per cent in Romania"s leading capital market.

Before the decision of the BCR Securities shareholders became public yesterday, the National Securities Commission (CNVM) restricted the operations of the brokerage firm for up to three months because the equity had decreased below the regulated minimum value of 125,000 EUR.

BCR Securities ranked 30th among brokerage firms operating on the Bucharest Stock Exchange at the end of August with a total brokerage turnover of 11 million RON.

BCR controls BCR Securities with 72.08 per cent, whereas Financiara SA is the second largest shareholder with 17.59 per cent. Insurance company Omniasig is the third largest shareholder with 9.84 per cent.