Banks in Romanis are met with hardships which require no special assistance from central bankPublish date: 21-10-2008
The tensions on the monetary market at the end of last week mirrored in the increase of interbank interests to 30-40 percent per year are temporary dysfunctions which do not require special support from the central bank (BNR), according to governor Mugur Isarescu.
He mentioned that ROBID and ROBOR interests on the monetary market reflect only partially the market's status.
On October 17, the leu hiked significantly from 3.7650 to 3.67 lei per euro, in contrast with the regional evolution, following high demand for the national currency on the market, according to dealers.
As interests on the monetary market exceed the lombard interest of 14.25 percent, the market can be labeled as dysfunctional, said Isarescu, on lack of state securities or high demand for lei.
He explained interbank interests are unlikely to go down soon, as banks which have state securities and can assign for lombard credit will want to benefit from the advantage given by the interest margin.
"Such anomalies cannot exist for much time," said Isarescu, adding banks will assign for lombard credits with interests of 14.25 percent, much less than the 30-40 percent interests on October 17. He also said the banks without state securities will take state securities from other banks.
BNR announced on October 17 an average interbank bid rate (ROBID) of 19 percent per year, above the level in the previous session, and a interbank offer rate for overnight deposits (ROBOR) of 46.13 percent per year, from 28.31 percent in the previous session.
Interests stood high today as well, after BNR posted a 15.99 percent ROBID interest rate and a 56.05 percent ROBOR interest for overnight deposits.
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