The implementation of IFRS as of January 1, 2012 is the second major change in the banking system after the shift from the old leu (ROL) to the new leu (RON).
The transition to the new system will not make an impact on the lending revival, but will add transparency and make it easier to compare Romanian banks’ performances.
Officials of the Romanian central bank gave assurances that IFRS adoption does not create premises for an unsound expansion of lending.
Local accounting standards (RAS) treat data differently, especially the non-performing loans, with banks using the IFRS system for their foreign shareholders.
But it seems that banks will continue to submit prudential reports to the Romanian central bank in the first year.
The authorities have decided to introduce prudential filters, whereby the central bank intends to make sure the solidity of solvency and liquidity indicators is not affected and is comparable to current levels.
So the “picture” of financial results appears to be better for the stock exchange, but not for the tax authorities or for banks.
JP Morgan analysts expect forex transactions worth between EUR1 billion and EUR1.5 billion on the local market as lenders prepare their transition to international accounting standards and will be exchanging euros to put the resulting excess liquidity into their reserves.
(English version by Daniela Stoican)