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The banking system of Romania is more solid and more prepared to face some difficulties, and the general data is far better from all points of view over the data of the crisis of 2008, said, on Wednesday, in a specialty conference, Eugen Radulescu, director of the Stability Directorate of the National Bank of Romania (BNR).
"All indicators are incomparably better at the time in comparison with 2008, showing that we learnt the lessons that should have been learnt after the then crisis. At this time, the banking system is more solid, more prepared to face some difficulties and the general data are far better now from all points of view. I would insist on the ratio between deposits and credits. Currently, credits are at 70 pct of deposits, while in 2008 the situation was the other way around. So, practically, then crediting was based on an overwhelming proportion on resources attracted from the outside. Now, banking credits are based on resources attracted from the country. This increases stability and helps things fare much better," Radulescu said.
The BNR official pointed out, at the same time, that there must be prudence in matters of general conduct of monetary policy and added that Romania is still facing some very serious macro-economic imbalances, but the current level of interest rates is one of the factors that contributed to the maintaining of exchange rate stability.
"We have twin deficits - the current account deficit and the budget deficit - which affect the possibility of interest rates going very far, due to the fact that the immediate risk is of a depreciation of the exchange rate. It's an exchange rate that sits very well in the market and it sits in the market because the fine tuning which was carefully accomplished during the entire period would allow exactly this. (...) The current level of the interest rate is one of the factors that contributed to the stability of the exchange rate holding," Eugen Radulescu mentioned.
Representatives of the banking system of Romania discuss, on Wednesday, about the economic situation and developments during the event ZF Summit Bankers 20.
