“CEC Bank’s management is the same as approved by the National Bank, nothing has changed. It should be noted that a potential process to replace the management would be lengthy, not at all simple, and BNR would be very strict with it. In conclusion, CEC doesn’t need any fuss around it, until the majority shareholder decides what to do about the management.”
Signals about authorities intending to replace Radu Ghetea from his position at the helm of CEC Bank first surfaced last November, originating from the former liberal finance minister Daniel Chitoiu in the scandal surrounding the about EUR1 million loan the bank had granted to Ioana Basescu, the eldest daughter of President Traian Basescu.
It is the first time since the start of such talk that the central bank intervenes via Nicolae Cinteza in an attempt to protect CEC from the rumors spread by politicians, which can shake the bank’s credibility before its customers and the confidence of its own employees.
The term of current management team run by Radu Ghetea, initially appointed to the position by the former liberal finance minister Varujan Vosganian in 2007, expires in May 2015. The government, represented by the Finance Ministry, is the sole shareholder of CEC Bank.
The head of central bank’s Supervisory Committee says that the replacement of the management of a bank can only be completed once the central bank approves the candidates chosen by the shareholders.
“There have been cases when shareholders made nominations and BNR rejected them because we are not willing to compromise even in the least bit when evaluating the competences of a candidate.”
The central bank regulations also require that the shareholders of a bank provide a reason for wanting to change the management when submitting nominations for approval.
The central bank official says CEC ended 2013 in the black, is sound and meets all the prudentiality criteria set by the regulations in force. As a result, it would be hard to find fault with the current team running CEC for its management performance.
CEC Bank was the fifth bank by assets at the end of 2013 and its market share stood at 7.4%, unchanged from 2012.
Cinteza’s statements come after Premier Victor Ponta had announced on February 24 that in his position as interim finance minister he had nominated Enache Jiru, state secretary with the Finance Ministry, for Radu Ghetea’s job.
The central bank has not received any notification thereof so far.
“Unless they send us the papers to have the new managers approved, it makes no sense to see all sorts of comments in the media scaring customers, be they depositors or debtors,” Cinteza concluded.
(English version by Loredana Fratila-Cristescu)