Bankers: NBR should ease the required reserve ratio
Bankers expect the new members of the central bank’s policymaking group to choose to cut monetary policy rate again tomorrow, in an effort to cut market interests. However, it would be better if the National Bank of Romania freed up more cash in the banking system by loosening rules on leu-denominated reserves banks must hold.
The chief executive of Banca Transilvania, Robert Rekkers said he “wished the reserve requirements for leu-currency liabilities to drop to 2%”, from current 15% as it would help resuscitate lending in local currency. Lending in lei is blocked by the sagging demand, and also by the high interest margins practiced by lenders. NBR has recently called on banks to reduce borrowing costs if they want lending activity to pick up.
Catalin Parvu, executive director of Piraeus Bank Romania said a further benchmark rate cut was likely, but NBR should also “cut the required reserve ratio”. Radu Gratian Ghetea, chairman of CEC Bank and Romanian Banking Association said NBR will take further steps to cut the prime rate.
Sergiu Oprescu, chief executive of Alpha Bank Romania expects the “National Bank of Romania to leave rates steady given the current economic and political environment”.
In order to compensate the liquidity shortage, banks have called upon the lombard credit facility, offered by NBR.
The chief executive of Banca Transilvania, Robert Rekkers said he “wished the reserve requirements for leu-currency liabilities to drop to 2%”, from current 15% as it would help resuscitate lending in local currency. Lending in lei is blocked by the sagging demand, and also by the high interest margins practiced by lenders. NBR has recently called on banks to reduce borrowing costs if they want lending activity to pick up.
Catalin Parvu, executive director of Piraeus Bank Romania said a further benchmark rate cut was likely, but NBR should also “cut the required reserve ratio”. Radu Gratian Ghetea, chairman of CEC Bank and Romanian Banking Association said NBR will take further steps to cut the prime rate.
Sergiu Oprescu, chief executive of Alpha Bank Romania expects the “National Bank of Romania to leave rates steady given the current economic and political environment”.
In order to compensate the liquidity shortage, banks have called upon the lombard credit facility, offered by NBR.