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BNR representative against the idea of caps on interests for loans: it is not part of the logic of market Economy
In connection with the legislative proposal through which the interests to loans for the population could be limited to at most 50% over the key interest of BNR Daniel Daianu, member of the Board of Central bank - BNR stated on Friday that the measure is not part of the logic of market economy.
‘Interests represent, in essence, the price of the loan, they reflect the creditation conditions and they depend, among other things on the meeting of the supply and the demand. The interest cannot be limited by decree. We can think of a regime of regulation and supervision of the banking activity, which is done as a result of the lessons taught by the financial crisis so that abuse is prevented, to trust more the suppliers and the consumers of financial services. I say again, to have a threshold, the first case, to decree is not part of the logic of market economy. There is, on the other hand, a certain reason for which such requests appear and they come from excess, sometimes too obvious of the banking industry.
In Romania, there are also margins which are explained by the banks through what we call country risks. We notice that the levels, for a long time, were considerably superior to those practiced in other countries, but the Central bank to dictate which should be the level of the interests on the market is something which is contrary to what a market economy is.
The banks, and we have been saying that for a long time, have to be friendly to the clients. The banks have to assume responsibility for the things which are not so good, among which some have contributed to the trouble associated withthe financial crisis. The clients have to be better informed, to try to get informed, but they need to be informed and this is the banks’ duty’, Daniel Daianu said.
‘As regards the Central Bank, it cannot impose a price of the loan, this is not done anywhere. We have the rates of monetary policy, which have a role not only to signal, but to guide the movement of the interests on the market. At the same time, they are part of the instruments of the monetary policy which watches the stability of prices and the ensurance of the financial stability. I see what the dissatisfaction of many is about, I see what their misfortune is, but the movement of interests on the market cannot be made in this way’ Daianu said.
The legislative proposal was made by the liberal senator Daniel Zamfir. This includes the amendment and completion of the Government ordnance no13/201 regarding the legal interest in money and penalising for the money obligations, as well as for the regulation of financial-fiscal measures in the banking domain, ‘ the conventional interest, both in money and the penalising one, payable according to the contract to the consumer, cannot be over 50% per year the legal interest’.