IMF's testing schedule imposed for banks
Publish date: 27-04-2009Commercial banks that could drop below the 10 percent solvency threshold, following a stress test required by the International Monetary Fund (IMF), will be compelled to increase their capital by September, according to the letter of intent signed by Romania's government and the IMF for a €12.95 billion loan, according to government sources for Business Standard.
Banks that committed to maintain exposure on Romania during a meeting with IMF officials last February must increase capital whenever necessary during the two years of the IMF agreement. The National Bank of Romania (BNR) has already carried out a stress test for banks, based on data available on 31 December 2008. According to banking sources quoted by the Cotidianul daily, the global amount needed for the capitalization of lenders is set at €900 million.
"Several hundred million [Ed. n. euro] have already been released by the shareholders of bank," sources said. BNR committed to finalize the stress test agreed upon with IMF by April 30. Alternatives include in the letter of intent for the capitalization of banks are a share capital increase, financing lines from mother-banks for at least five months, or loans from international financial institutions. By the end of 2008, the average solvency index amounted to 12.34 percent, lower year-on-year. The central bank recently recommended that seven banks maintain solvency above 10 percent. The legal minimum allowed solvency index is 8 percent.
Business Standard
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