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Bucharest
April 12, 2021
BUSINESS

Banks with Greek shareholdership in Romania, regulated and monitored by BNR

The banks with Greek shareholdership in Romania are well capitalized, observe the rules and procedures set by the National Bank of Romania (BNR), which, in turn, can exercise the function of last-resort lender for banks in difficulty, Professor and Member of the BNR Board Daniel Daianu told Agerpres.
”The BNR can exercise the function of last-resort lender, that is it can intervene to support banks that may experience some difficulty. There is also the guaranteeing of deposits of up to 100,000 euros and by far, most citizens of Romania have deposits below the equivalent of 100,000 euros. The banks with Greek shareholdership are Romanian banks following the rules and procedures set by the BNR, the former minister of finance mentioned.
He pointed out that banks with Greek shareholdership in Romania have not a different status than that of other entities in the Romanian banking sector. ”They are well capitalized. The financial crisis has shown that it is necessary, everywhere in Europe, for banks to be well capitalized, to rely more on deposits from residents, to have significant liquidity,” Daniel Daianu said.
According to him, there is no way for the banks with Greek shareholdership in Romania ”to suffer, as it happens with their parent-banks in Greece.”
”It is one thing to operate, as a bank, in an economy that is going down, which is threatened by insolvency, and an entirely different one [to operate] in an economy – as Romania’s economy is – which has greatly diminished and the imbalances recorded a few years ago, when it had to enter a financial assistance arrangement with the IMF, the World Bank and the European Commission. This year we will have an economic growth of probably over 4pct,” added the former minister of finance.
According to him, there is a huge difference between the state of the Greek economy and the state of the Romanian one.
”Per capita income in Greece is substantially higher than in Romania, but this fact is not decisive under the present circumstances, but the imbalances, the overall state of the economy. The outlooks make all the difference. There are also new financial stability levers in the EU, the Eurozone, including the unconventional policies of the European Central Bank, which help the activity of the central banks in the EU member,” added Daianu.

 

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