Schreiner: NBR should only discourage consumption credits

The central bank should try to discourage short-term credits, which fuel consumption, but do not affect investment financing, says Gerald Schreiner, CEO of Volksbank, the eighth bank in the system in terms of assets. “For inflation to go down, the NBR (National Bank of Romania) has to discourage consumption on credit. In order to do that, it could increase the minimum reserve requirements for new consumer loans granted by the banks,” says the head of Volksbank. Consumer spending is fuelled by short-term credits, denominated in RON, according to Schreiner, while long-term credits, which are generally taken out in foreign currency, go into real estate investments. “The regulations put in place so far have not been able to slow down consumption,” adds the head of Volksbank.