Radu Hanga, BVB: “We need to develop the ecosystem around the capital market“

“We have a legislative project that aims to bring the capital market closer to investors. Our goal is for companies to have as easy access to the capital market as possible. It is very important that resources are directed to investments in local companies for a balanced development of the local ecosystem.

Simplifying market access, less bureaucracy, a simpler interaction with the Ministry of Finance are some of the advantages of the new legislative project that we expect to enter into force.

In the current context, it is difficult to talk about growth potential, but rather about resilience and the ability to draw on these moments.

Inflation has started to rise all over the world. It is important to see how banks react to this rise in inflation. We need to see the speed and magnitude of interest rate hikes,“ Radu Hanga, President of The Board Of Directors, Bucharest Stock Exchange said during Financial Forum 2022 organized by The Diplomat-Bucharest.

“Inflationary pressures will put pressure on capital holders to find use for the capital they hold. Investments in listed companies will remain in a positive zone. There are also elements that make us constructive. Globally, we see an increasingly fragmented world. It seems that the process of globalization has taken a break. I think now is the time to build places together.

We have 2 listings scheduled for next week, we see a positive trend. We see a very good partnership with state institutions, which helps us to simplify investors’ access to the market. We also have a project included in the PNRR through which 35 million euros are allocated to the listings of local companies at BVB. Equally important is the message that the state says it supports listing companies at BVB. If we make the capital market work better and grow in terms of transaction volume, we can expect to see a positive evolution of the local economy.

First of all, we need to develop the ecosystem around the stock market. The interaction between us and investors takes place through the ecosystem of brokers, independent brokers, some of the largest banks in Romania. We need to make the listing process as simple as possible. The access to the market must be as simple as possible, and our positioning must be as constructive as possible. It is important to develop the brokerage ecosystem around BVB. We started to develop the research part and the community of analysts working in the capital market. We believe that the visibility and positioning of BVB is also good in development.

Promoting Romania to the status of an emerging market helped us in terms of visibility. The number of investors in BVB increased from 50,000 to about 80,000 at the end of last year. The activity of local investors is growing significantly, as shown by the evolution of indices. Romania has performed and is performing well in the current regional context.

We must remain constructive and do our best to develop the local ecosystem.“