Bank regulation needs to be more tightly correlated at aEuropean level, says Cristian Popa, NBR vice-governor in chargewith financial stability, because supervisors of host-countries,where large financial groups are present through subsidiaries, havea limited power to act over them.
Foreign groups concentrate over 80% of Romania's banking assets,with only two Romanian-held banks, CEC Bank and Banca Transilvania,being present among the top ten players in the system.
"We wrote the manual in a bid to scale back foreign currencylending, for macroeconomic reasons and to secure financialstability. As the steps impacted only the domestic market, theyhaven't been, by far, as efficient as a framework that would havealso targeted the parent-banks' markets of origin," said CristianPopa during a seminar organised at the end of last week on theoccasion of NBR's 130th anniversary.
The heavy weight of foreign currency lending, drawing near twothirds of total loans granted by banks to the private sector, hasput the NBR in a difficult position ever since the financial crisisonset.
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