Bankers in Romania team up with central lender representatives to tackle loan terms

Romanian bankers meet today representatives of the country’s central bank (BNR) to hash over issues regarding regulations on granting loans to individuals and find a common stance to publicly back, according to the general director of the Romanian Banks Association (ARB) Constantin Barbu.

Experts from banks met up on July 11 to revise different technical aspects of the draft with rules proposed by the central lender.

Bankers will talk with the first vice-governor of BNR Florin Georgescu and then discuss on a common stance, Barbu said, without revealing other details regarding the discussions.

BNR governor Mugur Isarescu repeatedly warned on the dangerous effects of the fast-growing lending boom in Romania which has artificially stimulated consumption.

The new draft with rules elaborated by BNR requires lenders to take into account when granting loan incomes 20 percent higher than those declared in the last fiscal year in the event people cannot prove continuity.

Moreover, BNR will require banks to develop a stress test on the market conditions in the past 18 months.

The central lender announced at the beginning of the week it will prolong the deadline for public talks on the new rules.

NewsIn