“Other challenges for the coming period refer to managing the contagion risk likely to become manifest in the event of adverse developments on global markets driven by the sovereign debt crisis or the considerably slower growth in developed economies, achieving a more balanced breakdown by currency of flows of new loans, and ensuring a more flexible set of early intervention tools to address credit institutions potentially in distress,” the central bank said Monday, in a news release announcing the new report.
The bank added that this situation requires continued efforts to maintain solvency, provisions and liquidity at adequate levels, as well as the enactment of new prudential measures.
“The non-bank components of the financial system (insurance companies, pension funds, non‑bank financial institutions and the capital market) saw mixed developments in the period under review, but systemic risk remained low,” the news release notes.
There were no major disruptions in the payment systems and the securities settlement systems, due to the central bank’s actions against risk.
Referring to Romania’s macroeconomic situation, the bank notes that it has improved over the past year, while the preventive agreement concluded with the EUR, IMF and World Bank will help maintain financial stability and structural reform.
“The risks to the banking sector were adequately managed via credit institutions’ own efforts, which translated into higher solvency, provisioning and liquidity. The National Bank of Romania continued and diversified its cautious macro‑prudential policy by providing liquidity on a case‑by‑case basis, requiring capital increases in a proactive manner, closely monitoring banks and improving the regulatory framework,” the bank noted.