ECONOMY FINANCE&BANKING

Banks’ Association official: Efforts should be made to restore reputation, trust between banking system, customers

The way of treating the crisis effects, the level of regulation, the digitization, the initiatives on the growth of the capital market’s role in the European financial system, the European economy’s whole situation, alongside reputation are the factors that influence the banking system of Europe and of Romania, too, says the Chair of the Romanian Association of Banks (ARB), Sergiu Oprescu.

‘We must admit that the banking system, not only the Romanian one, but in general is at a minimum point as regards the perception and reputation it has to the public. It is clear that we should make special efforts and I’d launch this topic, for Romania, in particular. We should make special efforts to restore this reputation, to restore trust that comes between the clients and the banking system. There is no formula, or at least I don’t know of a prosperity formula at a country level where a tiny, or risky or with problems banking system exists,’ on Wednesday said Sergiu Oprescu to the Romanian Banking Forum.

In his opinion, the banking system in Romania has an additional chance over other European countries, because it has never asked for public funds to recapitalize during crisis.
‘The banking system in Romania managed to stay very well on its feet, to be capitalised with the money from its own stakeholders, and to have today an average 18pct solvency level, by around 10pct beyond the minimum level required by the European regulators,’ said Oprescu.

The way in which the banks will face the wave of regulations will influence their future activity, says the ARB Chair. According to Oprescu, besides the European regulations, the Romanian market is subject to a ‘slightly populist wave of legislation’ that should be analysed, because it will have a specific impact upon the local banking system.
Another challenge for the banking system is represented by the European initiative on the establishment of the Capital Markets Union, that puts a ‘beneficial pressure’ on the banks with the idea to increase competitiveness the customer will eventually benefit from, adds Sergiu Oprescu.
‘The entire economic situation at European level puts pressure on the banking system, too, in particular because the outlook is far from optimistic,’ concluded

Related posts

Ioana Petrescu, ex-FinMin: “Lots of money leaving the country without us even trying to hold on to them!”

Nine O' Clock

Isarescu about the possible contribution of some of the members of the BNR leadership to the government program: BNR’s independence doesn’t mean the lack of collaboration with the Government

Nine O' Clock

US ambassador at inauguration of 60-ml dollar investment: A good example of Romania’s potential

Nine O' Clock