NBR: Banks should balance loan deposit ratio

Bankers should consider more carefully the balance between deposits attracted in one currency and the credits granted to clients, warned the NBR (National Bank of Romania) Governor, Mugur Isarescu. “I recently looked over banks’ balance sheets, and noticed currency balance sheet mismatches, which must not be overlooked,” said the Governor. Isarescu reiterated his warnings on the high share of foreign-currency denominated loans, as well as on their high rise. While most deposits attracted locally are in RON, banks mostly grant loans in foreign currency. Isarescu admitted that it was natural for commercial banks and the central bank to have differing opinions, since the former seek to expand their businesses and are more optimistic.