Speaking at a banking seminar, Ionut Dumitru said deleveraging cycles (through which local banks pay off debt to their parent banks) usually take approximately five years to complete.
“If history repeats itself, deleveraging will continue for one to two years. The process should be completed in late 2014 or early 2015,” Dumitru said.
Central bank economist Valentin Lazea said in turn that banks need to continue deleveraging to reach an optimal assets-to-capital ratio.