Savings Bank chairman steps down

The situation of one of the largest financial-banking institutions in Romania, Casa de Economii si Consemnatiuni (Romanian Savings Bank- CEC), has become extremely blurred, after the institution’s chairman Ion Ghica handed in his resignation at the end of last week.

This resignation comes soon after two of the three CEC vice-presidents have left the institution settling for better positions.

Consequently, for the first time in the development of the Romanian banking system, the executive board of the Romanian Savings Bank is comprised of only one person, that is Niculae Balan, vice-president.

“I requested to be relieved from my position last week. I cannot detail the reasons for my decision for the time being. What I can say, however, is that I will not go somewhere else (that is to take over a management position in another bank) for the moment,” Ion Ghica, CEC chairman, told Ziarul Financiar.

He took a one-week holiday, waiting for the authorities to make a decision. Ion Ghica handed in his resignation to Finance minister Mihai Tanasescu, who is to inform Prime Minister Adrian Nastase about the situation at the Romanian Savings Bank.

The State, represented by the Finance Ministry, is CEC’s sole shareholder. The PM appoints CEC’s executive board (chairman and vice-presidents). The other members of the Romanian Savings Bank board are appointed by the Finance Ministry.

Prior to Ion Ghica’s resignation, the Romanian Savings Bank was already facing the problem of an incomplete board as of August 1, which did not allow it to make decisions, because it did not meet the membership requirements stipulated in the operational statute.

The National Bank of Romania (NBR) at that time sent a letter to the Finance Ministry officials warning them that the Romanian Savings Bank was having problems due to the lack of an executive board, thus becoming the potential target of NBR penalties.

Although the Romanian Savings Bank attracts the largest volume of deposits from the people, especially from low-income citizens, the authorities, no matter the political orientation, have been indifferent to its situation. CEC management used to be appointed on political criteria until last year, which made it possible for it to become part of ventures with FNI (Fondul National de Investitii- National Investment Fund), Banca Dacia Felix, Creditbank or Banca Albina that harmed both its reputation and its financial situation.