CEC Bank

CEC Bank (prior to May 6, 2008 Casa de Economii și Consemnațiuni, but already known then as ''CEC''),Timeline – Continuation
, cec.ro (CEC Bank). Accessed 13 June 2012. is a state-owned Romanian banking institution.CEC Bank, majorare de capital de 55 mil. euro
originally published in the Romanian ''Business Standard'', 29 July 2009. Accessed 12 June 2012 on money.ro.Despre CEC Bank – Tabel cronologic
, cec.ro. Accessed 12 June 2012.

In 1990, shortly after the Romanian Revolution of 1989, CEC had a 32.9% share of the Romanian market for banking; by 2006 this had fallen to 4.03%. Radu Ghețea
CEC Bank: Solvabilitatea băncii depășește 18%
, originally published in the Romanian ''Business Standard'', 24 November 2009. Accessed 12 June 2012 on money.ro. At the end of 2009, CEC Bank had 1,351 branches, more than 800 of which were in rural Romania, many with only one or two employees.
originally from ''Mediafax'', 7 February 2010. Accessed 12 June 2012 on money.ro. As of August 2009, the bank had 2.7 million customers. Anca Toma

5 August 2009, money.ro. Accessed 12 June 2012.

History

CEC was founded in 1864—five years after the union of the two Danubian Principalities, and more than a decade before the Romanian state as such—as the Casa de Depuneri și Consemnațiuni (literally "Deposits and Consignments House"Timeline
cec.ro (CEC Bank). Accessed 13 June 2012. but effectively "Deposits and Consignments Bank": the Romanian ''casa'' is used analogously to the French ''caisse''; both are related to the English ''cash''). In 1880, the name was changed to Casa de Depuneri, Consemnațiuni și Economie ("Deposits, Consignments and Savings House"). In 1881, the financially independent ''Casa de Economie'' ("Savings Bank"), was set up under its aegis.

In 1887, the cornerstone of the CEC Palace was set; the building opened as the bank's headquarters in 1900. As of 2012, CEC Bank is still headquartered there, although the building has been sold to the municipality of Bucharest for an eventual museum; CEC Bank is leasing the building until they build or otherwise obtain an appropriate modern headquarters.

Romania entered World War One belatedly on the Allied or ''Entente'' side, and was largely overrun by the forces of the Central Powers. A portion of the bank's management remained in occupied Bucharest, while another portion relocated to Iași, in Northeast Romania. Prime minister Ion I. C. Brătianu decided to send the Bank's treasury, as well as other assets including the treasury of the National Bank of Romania, to Iași and later to Moscow.

In 1930, the ''Casa de Economie'' was spun off as an institution in its own right, the Casa Generala de Economii ("General Savings House" or "General Savings Bank"), which in 1932 became the Casa Naționala de Economii si Cecuri Postale ("Savings and Postal Cheques National House", "National Bank for Savings and Postal Cheques", etc.). The two entities were joined back together at the start of the Communist era, in 1948.Despre CEC Bank – Tabel cronologic – Continuare
, cec.ro. Accessed 14 June 2012.

In Communist Romania, CEC created a number of types of accounts, including passbook savings accounts with various combinations of interest and prizes, and opened branches throughout Romania. From 1970 to 1985, CEC made housing loans as well. After the 1989 revolution, CEC began activities such as granting loans to other banks and dealing in government securities. In 1996, Law No. 66 reorganized CEC as a joint-stock company with the Finance Ministry as its sole shareholder. Beginning in 2005, moves were made toward privatization. A 2006 attempt at privatization was cut short when the government was dissatisfied with the bids. The possibility of privatization has been in play as recently as January 2011.CEC Bank needs funds, privatisation seen likely
financiare.ro, 11 January 2011. Accessed 14 June 2012.

Notes

External links

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English-language portion of site

{{DEFAULTSORT:Cec Bank
Banks of Romania
Companies based in Bucharest
Banks established in 1865
Romanian brands