“We will no longer be talking about this and that penalty, we will add a much harsher punishment: a higher capital requirement. Wherever we find a higher risk, we’ll require a higher capital,” Cinteza said.
“If a bank does not comply with our requirement, I believe the natural thing to do is protect the depositors, of course, and not allow that bank to take any more deposits. And we’ll have no qualms about making such a decision.”
Known for his rigorous control over the system and commanding respect even to the officials of parent banks, he will demand lenders to audit certain financial parameters reported on June 30, as he wants the collateral and other assets appraised as closely to the market reality as possible. Banks will also have to practice transfers to the bridge bank, as the central bank wants the system to be as familiar with the procedure as possible.
“I said it last year, 2013 will be a difficult year, as well. The banking system is stable, but things are not rosy.”
Bank managers will find out what is in store for them in terms of supervision, what are the problems that the central bank is concerned about and what expectations it has of them during the a special meeting at the Romanian Banking Institute on May 28.
(English version by Loredana Fratila-Cristescu)