Loading ...Bank deposits will rise faster than loans in the following period and the loan-to-deposit ratio is likely to become unitary compared to the current ratio of 1.3 to 1, chief economist of the National Bank of Romania (BNR) Valentin Lazea told the Romanian Bank Forum on November 19.
“There is no liquidity shortage in the system, especially what the Romanian currency is concerned. The foreign currency will definitely be less accessible, but it will not block the currency inflow. However, the loan-to-deposit ratio must be balanced both for lei and foreign currencies”, Lazea said.
The BNR official stressed the Romanian market was heading to a normalized state, with the central bank supplying liquidities to the commercial banks. When the market was faced with a liquidity surplus, the situation was not normal, he added.
Some of the banks in the domestic system have to refer to the central bank for liquidities, concurrently with the ongoing financial crisis.
“I have warned the treasurers of the commercial banks since the beginning of the year that we will have to deal with a structural liquidity deficit. The banks can provide themselves with the necessary liquidities in three ways – credit lines from the parent company, which are indeed less accessible, but not completely dried out, attraction of deposits from the population at interest rates as favourable as possible and the acquisition of government bonds, accepted as collateral for BNR loans, by Repo transactions with a 10.25% interest rate.
This recommendation related to the government bonds was followed by some banks and ignored by others”, BNR official added.
The representatives of the Romanian banking market participated on November 19 in the 11th edition of the Romanian Bank Forum organized by Finmedia supported by the National Bank of Romania.
The representatives of the Romanian banking market participated on November 19 in the 11th edition of the Romanian Bank Forum organized by Finmedia supported by the National Bank of Romania.
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