What policy response do bankers suggest to the Central Bank and to Government?
Romanian banking system is in very good shape, proving it is capable of coping with the international crisis’ sprawl, and will keep on coping with the help of National Bank of Romania (BNR), said Radu Gratian Ghetea, chairman of Romanian Association of Banks (ARB).
Ghetea stresses that “In this context, dented by the unfair rating downgrade operated by the rating agencies, the banking community is seeking for solutions to carry on lending. Pragmatic solutions, to set lending and economic growth into motion again,” said Ghetea, at Romanian Banking Forum.
As for the Romania’s economic crisis and attitude of rating agencies towards it , Adrian Vasilescu made a comment on his own behalf, and not as representative of National Bank of Romania.
“Rating agencies make reviews from a height where the details of our country within the geographical framework are lost from sight. A characteristic of Romania’s financial market is that although we were recommended toxic products that led to the current situation overseas, NBR managed to overcome, therefore, Romania did not make so many foolish things on the financial market”.
He also added that in a capitalist society, the consumption is the engine of capitalism and must not be oppressed, but it is very likely, that after the crisis, the consumer’s behavior will change, namely it will see consumption at another pace.
Chairman of ARB reminded that during the last week talks at Victoria Palace, bankers together with Prime Minister Calin Popescu Tariceanu examined all measures that must be taken to restore the crediting system, and the domestic economy.
The first category of proposals addresses to National Bank of Romania, by cutting the required reserve ratio, to set liquidity into motion and to purchase state securities or to loan small and medium sized companies, or agriculture.
The cut of the required reserve ratio by BNR would help economy
Another proposal forwarded by bankers sets forth the revision downwards of the monetary policy interest in order to have a better management over interests.
Meanwhile, he also suggested that the benchmark lending rate should be reduced.
“We had, during the last week meeting with the Prime Minister, a set of proposals on the measures that central bank should take. High required reserve ratio are narrowing lending. It was proven that the current level was welcome, but if we talk about a re-launching, our proposal is that the liquidity to be released”, said Ghetea.
Translated by Camelia Oancea
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