Banking market

Site www.bnr.ro

The Romanian National Bank (RNB-BNR) operates as a central bank and all the commercial banks are operating on the basis of authorization issued by RNB.

The currency policy of RNB mainly targets to slow down the inflation and to stimulate a real economic growth. Inflation in 2000 was of 26.4%.

The commercial banks have the following activities :

• credits granting;
• issue of pledges and letters of credit;
• issue and exchange of transferable securities.

At the moment there are 24 commercial banks out of which 14 are of foreign capital.

The law of banks' privatization issued in 1998 stipulates that the privatization of state banks can be achieved by finacial investments in Romania done by foreigners.

The regulation imposed by RNB to the commercial banks (SITE BNR).

International banks can operate in Romania through subsidiaries, branches and joint stock companies. The most famous banks of this kind are Citibank, Societe General, ING.

The settlements of RNB stipulate that the commercial banks have the following tasks:

a) to have an equity of minimum 100 bn ROL;
b) to create the 2% fund for the credit risk;
c) to have minimum reserves of 20% in ROL and foreign currencies (deposited at RNB);
d) The proper capital restitution of 8% (own funds/net account), 12% own capital/ net account);
e) to limit the loan at 20 % for a sole client;
f) to allocate maximum 20% in non-banking investments;
g) not to own unusable properties;
h) to draw up the montly report to RNB in standard type.

Main commercial banks in Romania