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IFRS implemented with Romanian banks as of next year, industry association announces
The implementation of the international financial reporting standards (IFRS) in the Romanian banks' financial accountancy system will come in force as of January 1, 2012, announced president of the Romanian Banks Association (ARB) Radu Gratian Ghetea.
'This is a difficult project and we have been working on it for at least two years now. Some aspects were settled rather late. We hope to complete the system by the end of the year,' said Ghetea.
Referring to the SEPA (the Single Euro Payments) program, Ghetea said that the first stage for inter-bank transfers would begin on August 13, 2011.
'We must be technically prepared for switching to the euro, whenever this happens,' said the ARB official.
According to him, ARB is considering getting the population familiar with the notions of the banking system. The ARB representatives decided during the Shareholders Meeting on Thursday the switch of the institution from a Board of Directors to a Management Board and also increased the leading team from five to seven members.
As for the ARB budget, the shareholders approved a level by 5-7 pct higher than last year.
According to Agerpres, during the press conference that followed the Shareholders Meeting, Radu Ghetea stressed that the credit recovery process by the execution of guarantees will slow down because of the renouncing to bank executors, and the customers will stand to lose because enforcement costs are higher when court enforcement officers handle the matter instead of bank executors.
As for the taxation of banks, Ghetea believes that such a provision 'is immoral and illegal' and may have adverse effects, such as rising lending cost and thwarting lending activity even more.