Romania's banks sheltered from toxic and highly sophisticated products
Publish date: 15-10-2008Banks in Romania found ways to develop on the local market and to obtain attractive profit margins which provided cover from the so-called toxic products or sophisticated instruments that caused troubles to Western lenders, the country's central bank (BNR) governor Mugur Isarescu stressed.
Moreover, the Romanian banking system did not come into contact with any type of subprime mortgage loans, added Isarescu.
The impact of the international financial turmoil on Romania is still limited, according to a BNR analysis, due to the country's focus on safer products, which assure attractive profits for banks, but also thanks to prudential norms imposed by BNR.
Romania's banking system has an overwhelming weight in the financial system because the stock exchange and other segments like insurance are much more reduced.
"What goes on at the Bucharest Stock Exchange (BSE) is worrying, but its influence needs to be considered in the context of the importance of the BSE in Romania's financial system," Isarescu explained.
NewsIn
Latest News:
- Insurance market stagnated in 2013 while GDP chare dropped to 1.3%
- The Romanian Leasing Market as of December 31, 2013
- Millennium Bank reports best results since its launch, helped by stronger banking income and cost cuts
- BCR cheapens First Home loans and lowers interest loans for loans in lei
- Millennium Bank's new Salary account clients receive up to 600 lei bonus and their utility bills' payment
- GarantiBank and Seamless introduce SEQR in Romania: the newest mobile payment solution
- Bancpost telecom services, now provided exclusively by Romtelecom and COSMOTE Romania
- Millennium Bank cards offer discounts in Domo stores
- BCR Supervisory Board reshuffles Management Board
- NBR decide to lower the monetary policy rate to 4.25 percent per annum
- Common appointments in Romtelecom and COSMOTE Romania
- Up to 5.5% annual interest rate for Millennium Bank's promotional three-month lei deposit
- Eurozone in recovery mode but gap between North and South still widening
- UniCredit Tiriac Bank and RBS Romania announce the successful completion of the retail clients' migration
- Millennium Bank grants First House loans in lei