Central bank deputy governor Bogdan Olteanu said the deleveraging process–through which foreign banks reduce their exposure to the local economy–can be balanced with public policies that allow banks to increase their lending capacity.
A lower budget deficit, alongside a set of measures that would stimulate savings are possible solutions to boost lending resources, Olteanu told a financial forum organized by Mediafax.
“Savings levels have increased significantly since 2008, but the growth came after two decades of very low levels of savings in Romania. We should explore a public policy to stimulate savings,” Olteanu said.
The central bank official said consumers are not currently encouraged to save money, because interest rates on deposits are taxed by the same amount as the other types of income. Therefore, the banks must search for alternative ways to extend their financing pool, he added.
The central bank Tuesday approved a draft law that would allow commercial lenders to issue mortgage covered bonds.
“The draft […] should ensure a financing flux toward banks which they may use to continue lending,” Olteanu said.