The banks will have to find new financing sources, and bond issues on the capital market could be one solution, as the lending growth will make it hard to secure long-term sources, the National Bank of Romania (NBR) vice-governor Mihai Bogza said. "The fast non-government lending growth causes NBR to be concerned about how the banks plan to secure the resources for the longer-term maturities, as well. Most of the current resources come from deposits, which are highly volatile because they can be withdrawn at any time before their due date," the NBR vice-governor said. To that end, the central bank will urge banks to release bonds on the capital market, as these instruments come with a fixed due date and can be issued for longer terms than banking deposits. The NBR official says that banks have not had trouble raising cash thus far, as they have been covering the longer term credits from either their own resources or from the lines of credit supplied by foreign banks or international financial institutions. "Considering the fast-moving lending lately, which we feel will maintain, although at a slower pace, it is only a matter of months before the need for new long-term resources becomes serious for some of the banks," Bogza specified. ZF
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