BNR asks banks to take measures regarding interests and commissions

The National Bank of Romania (BNR) asks banks to pass measures if there are situations in which, because of lower interests and higher commission fees, depositors withdraw from termed deposits less money than they deposited, invoking the reputation risk and the publicity of the phenomenon in the media, according to a document transmitted by the Central Bank to the banking system and obtained by Mediafax. These data will be communicated to BNR until the end of the month at latest.
Since the middle of last year, when BNR resumed the gradual reduction of the interest, commercial banks replicated much of the evolution of the monetary policy rate in the interests they grant on deposits. Toward the end of last year and early in 2014, when the Central Bank released more cash into the market, interbank interests dropped to all-time minimums. With annual interests between 2 percent and 4.25 percent a year for 3-month deposits, the interest cashed in for a RON 1,000 deposit is, on most situations, smaller than the monthly administration commissions set by some banks. If a depositor does not withdraw the sum on maturity date, most banks charge a commission of 0.5 percent.
Kiwi Finance: Refinancing for loans with interests above 7 pc
Bank customers who pay interests above 7 percent on old foreign currency denominated loans should think about refinancing in RON, given the new costs of the market, the CFO of Kiwi Finance, Anamaria Rotar said in a press conference. The officials of the broker explained that a percent point less for the interest will lower the monthly installment by 10 percent for a 3-year loan. The successive series of monetary policy rate cuts and the freeing of cash reserves that turned into liquidity in the market, the interests for EUR and RON that are at historic minimums represent factors that will boost the relaunching of the crediting process this year, Kiwi estimates. “We expect banks to look with friendlier eyes to crediting, first for SMEs, naturally followed by the population. (…) We see new investors and new projects on the real estate market in the residential segment, but also in the commercial one, and in the second part of last year we noticed a timid resumption of crediting for the corporate zone in the real estate sector, but this was the first recovery after 2008,” said Anca Bidian, CEO Kiwi Finance.

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