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President Basescu: Subsidiaries' activity not subject to restrictions from parent banks
According to Agerpres special correspondent, President Traian Basescu stated on Friday at the end of the works of the European Council that one of the major conclusions reached by the EU leaders on this occasion refers to parent banks not having the possibility to restrict the activity of their subsidiaries in EU states.
'We would have wanted a far stronger formula, but this is a compromise reached following talks with heads of state and government. We would have wanted an express recommendation to parent banks not to repatriate invested money from markets where they run subsidiaries,' said the Romanian President.
He added that such a 'strong formula was not accepted in the end, but the variant was preferred according to which support from parent banks should not involve restrictions on the activities of subsidiaries based in EU member states.'
Basescu also mentioned that another subject approached was the supervision of the global financial system and the need to place rating agencies under supervision to see whether conflicts of interests exist.
'The global supervision system will be far more attentive with both the financial institutions and rating agencies,' added Basescu.He mentioned that during the works of the Council, Romania backed the standpoint according to which banks need to be cleared of ''toxic credits.'''Based on our experience, we were this time extremely firm in stating that until all banks are cleared of bad assets or toxic credits, injections of public money into the banking system will not prove top-efficient,' explained Basescu.