The Romanian banking sector is solid and solvent, the central bank said in a statement. End-June, the average solvency rate in the Romanian banking system stood at 19.8%, compared with a required minimum of 8% and a European average of 14%.
No bank in Romania has a solvency rate below the minimum required threshold, the central bank said.
It added the institution supervises banks from a prudential and not a fiscal standpoint. When a bank registers losses that deteriorate prudential indicators, the central bank requires that banks raise their capital to reach solvency and liquidity levels that ensure the bank’s functioning and the security of deposits. Following central bank action, banks operating in Romania had capital inflows of nearly RON15 billion (over EUR3.3 billion) in 2008-2017.
Also, under EU and national laws, all deposits of up to EUR100,000 are guaranteed. At the end of June, more than 10 million people in Romania had bank deposits and 99.65% of the total had deposits within the guaranteed cap. For corporate deposits, 97.57% of the total number of companies had deposits within the guaranteed cap.
“There is no cause for concern regarding the safety of deposits kept in banks in Romania,” the central bank said.
Prime Minister Mihai Tudose on Monday said the government owes it to Romanians to issue a list of banks where people’s deposits are at risk unless banks are fair and report their profits.
“If a bank doesn’t make a profit and will continue to not make a profit, then my understanding is that it has a problem,” said Tudose.