Romania's capital market shows promising growth and stability

Alexandru Petrescu, president of the Financial Supervisory Authority (ASF), asserts that Romania can no longer be described as a market consistently valued below its book value. This marks a significant shift in perception, reflecting the country's evolving financial landscape.

Currently, Romania's capital markets stand out in the region, nearing the performance of developed economies like Italy, France, and Spain. However, the country remains below the European average and significantly under the global level. The price-to-book ratio for Romania is 2.02, while the price-to-earnings ratio is 13.64, indicating a potential for growth.

The dividend yield in Romania is currently at 3.39%, which suggests that investors may find attractive opportunities in the market. Petrescu emphasizes that the performance of the capital market is closely tied to the banking and energy sectors, and he encourages a balanced interpretation of market indicators.

He highlights the need for a deeper, more liquid, and diversified market to support sustainable growth. Trust in the capital market is built through transparency, solid governance, investor protection, and adherence to regulations. Progress requires patience and responsibility, with a focus on long-term development.

In the broader economic context, budgetary discipline is improving, with the budget deficit reduced to 2% of GDP in the first half of 2026, down from 3.64% in the same period in 2025. Additionally, two new milestones from the National Recovery and Resilience Plan have been achieved, indicating ongoing commitment to fiscal stability and growth.

As Romania embraces digitalization, it aims to foster a more competitive and resilient business environment. The Banca Națională a României (BNR) continuously monitors the banking sector for cybersecurity risks, ensuring the resilience of financial institutions. This collective effort from various sectors underscores Romania's dedication to strengthening its capital market and overall economic health.