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Isarescu: Some legislative proposals risk to disturb a balanced banking market
A series of legislative proposals risk to disturb a balanced banking market and this risk arises if the proposals are not calibrated carefully and with the necessary skills so as to avoid unwanted consequences, National Bank of Romania (BNR) Governor Mugur Isarescu said on Wednesday.
"A series of legislative proposals of today, even if well-intended, risk to disturb a banking market that has become balanced. This risk arises especially if these legislative proposals are not calibrated carefully and with the necessary skills so as to avoid unwanted consequences. We do not have to expect only the constitutional forum to clarify things. Sometimes it is too late. Obviously, one has to intervene on the way, with information, clarifications, with honest and accurate details," Mugur Isarescu told the Profit Financial Forum conference on "The impact of regulations on financial markets. From good intentions to unexpected consequences."
The BNR governor said that the share of non-performing loans is at the lowest post-crisis level, 5.56pct, compared to 22pct a few years ago.
He said that with the decline in non-performing loans, any discontent of consumers with banking products goes down proportionately. Also due to this phenomenon, the profit of the banking system as a whole is a substantial one, capable of contributing to the stability of the Romanian banking system.
According to the BNR governor, lending is advancing at a good rate of around 7pct per annum, especially on the RON component, which reduces considerably the foreign currency risk when taking a loan.