The first casualty of the malfunction is the loan in Swiss francs
NBR governor explained that the banks risk in losing clients if they will rush into transferring all the interests’ raises to loans, due to liquidity shortage that the national and international interbanking market is experiencing.
“The first casualty of this malfunction is the loan in Swiss francs, and loan in foreign currency is the next one on the list,” Isarescu stated.
Interbanking interests skyrocketed in the past few days, up to 20-50% per year for one-day overnight deposits, exceeding the benchmark lending rate’s level due to uncertainty on the banks’ liquidity supplies.
NBR governor added that certain banks had to halt lending last week, but he explained that the reason is the uncertainty that reigns over the national and international market, and not because the new lending conditions of the banks are in course of approval at NBR.
“I warn those who say that banks are unable to grant loans because their lending conditions are at NBR, that the lending conditions are not at NBR, but at commercial banks,” said Isarescu, explaining that while NBR is analyzing the new lending conditions of the banks, they can still apply the old ones.
The governor added that uncertainties in the national and international market have led to fears in banks and population, and expressed his confidence that banks will continue on granting loans.
“From a fast-paced growth to a breakdown, things are not easily done. The difference consists in stepping the break pedal. We got used to a high economic growth, a high growth of lending”, said Isarescu, adding that the central bank is considering organizing a seminar to explain the facts.
Pressures surged late last week in the monetary market mirrored in 30-40% growth of interest are temporary malfunctions that don’t require additional special facilities by NBR, the governor said.
He mentioned that Robid-Robor interests in the monetary market are no longer reflecting the real facts of the market, or partially at the very most.
On Friday, national currency increased, from 3.7650 up to 3.67 lei/euro, in contrast with regional evolution, after speculators close down positions on euro/leu and needed to buy lei, according to market leaders.
In case the interests in the monetary market exceed Lombard interest of 14.25%, the market can be seen as dysfunctional, said Isarescu, who gave two main reasons for this possible situation: whether there are not enough state-owned securities, whether it is a big demand of national currency.
Translated by Camelia Oancea
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