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February 1, 2023

Florin Georgescu (BNR): A period of re-regulation will follow, against the backdrop of the crisis continuing

National Bank of Romania (BNR) First Deputy Governor Florin Georgescu stated that “a period of re-regulation will follow” against the backdrop of the financial crisis continuing and a stricter period will follow a more relaxed period in the market. “It’s good for us specialists to act, in the state-market relationship, like Brancusi’s column. It leaves you, it squeezes you… Now comes the squeezing period. By applying the rules the volume of activity contracts and the crediting sector becomes less risky. The challenges faced by the leasing sector are of continuing to have a portfolio of clients with good medium and long-term reliability, with financing that would on the one hand focus on the SMEs area, because they do not have sufficient capital, and on the other hand there is the issue of people with relatively low income,  of satisfying their current needs,” the First Deputy Governor stated on Thursday evening at an event in which he became Honorary Member of the Association of Financial Companies at 10 years of activity on the local leasing market.

Georgescu stated that effects of the crisis continue to make themselves felt in Europe and regulation on the part of the supervision authorities remains necessary, emphasizing that rules that would make crediting less risky have to be applied in the state’s relation with the financial sector. “The crisis that started is continuing in Europe and in other areas of the world. Some say allow us to self-regulate, the market regulates us, the market is the one that regulates processes and phenomena. But systemic risk was lost sight of and we witnessed one of the most expensive crises that has seriously affected the state’s public finances and which continues to manifest very strongly. A period of re-regulation will follow. At first there was regulation, then deregulation, when it was said leave us alone because we know what we are doing. If things go well the deregulation will continue, but if they deteriorate the re-regulation will be next,” Georgescu stated.



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