Why did the state have to intervene on banking market?

The banking system after the disputes over the enforcement of Ordinance 50, which are not over yet, is left with a stain on its image of a highly professional industry, where competition can settle potential slippages, which it had created for itself.

So far, the state has had to come up with an extensive set of very precise regulations to ensure protection of clients only in the banking system, something that did not happen in the case of insurance or mobile telephony sectors.

Although bankers have always said that competition is “fierce” in their industry, the market has failed to regulate such slippages as non-transparent interests or early repayment fees, which drove clients to the brink of rebellion. With the enforcement of the stipulations of Ordinance 50 procrastinating, thousands of clients have joined forces over the Internet and in an unprecedented move decided to file collective lawsuits against banks.

Now bankers would rather go to court than operate generalised adjustments to interests of old loans and give up some fees, as demanded by clients, says Bogdan Chiritoiu, chairman of the Competition Council. The heads of the Romanian Banking Association were not available for comment on the issue yesterday, thus continuing the maximum secrecy policy in terms of Ordinance 50 enforcement.