Ascultă Radio România Actualitaţi Live

Banks "did not understand anything" from what the governor said

BNR adviser, Adrian Vasilescu, says that banks "did not understand or they pretend they did not understand" the message of the Central Bank Governor on the interest rates on loans.

Articol de Mihaela Mihai, 10 Iulie 2013, 11:05

BNR adviser, Adrian Vasilescu, argues that banks "did not understand or they pretend they did not understand" the message of the Central Bank Governor on the interest rates on loans.

The National Bank governor’s advisor, Adrian Vasilescu, said at Radio Romania News that "everyone would benefit" if bankers would implement the lower lending rates.

Lower interest rates on loans would have been stimulated, according to BNR governor Mugur Isarescu, by the recent decision of the Central Bank of lowering the policy rate from 5.25 percent to 5 percent.

"The Central Bank gave the signal to reduce the lending rates.

"Banks need to see that this trend is sustainable," said Isarescu a few days ago.

Meanwhile, the dialogue between the central bank and commercial banks appears to have been continued.

"The governor gave this very clear message," said Adrian Vasilescu at Radio Romania News.
"He said that interest rates are high.

"They pretended they did not understand, their reply was that we reduce the interest rates when the market is telling, not when the National Bank say it or when is required by someone.

"And we, from the National Bank, said that they did not understand anything that the governor said, that the governor did not instruct them to lower the interest rates.

"He did not tell them that the National Bank asks to lower the interest rates. He said an entirely different thing and they either did not understand or they pretend they did not understand.

"He said that, if the interest rates are high, these will turn against them like a boomerang and will strike them suddenly," said Adrian Vasilescu at RRA.

Contacted by the RRA Online, Chairman of Romanian Banking Association, Radu Gheţea, refused to comment on adviser Vasilescu’ statement.

What the policy rate is


The policy rate is the interest on which commercial banks borrow from the Central Bank. The ceiling of 5 percent per year is now the maximum rate that the Central Bank lends to commercial banks.

When the monetary authority - namely the National Bank – lowers the policy rat, it stimulates the interest for request and refinance of banks to more loans.

In other words, commercial banks have access to cheap money as the monetary policy interest rate is lower. Having access to cheap money, commercial banks could theoretically give themselves low-interest loans, maintaining the rate of profit.

Translated by Alexandra-Diana Mircea
MTTLC, Bucharest University

The fire in Arges "could not have started by natural causes"
News in English 21 Aprilie 2025, 19:01

The fire in Arges "could not have started by natural causes"

The IGAV's two Black Hawk helicopters withdrew last night after dropping 240 tons of water, a vital aid because the...

The fire in Arges "could not have started by natural causes"
Financing guide under the "Rabla for tractors" program published
News in English 21 Aprilie 2025, 19:00

Financing guide under the "Rabla for tractors" program published

This week, another necessary step of the "Rabla for tractors" program was completed - the publication of the...

Financing guide under the "Rabla for tractors" program published
A new multinational exercise on Romanian territory
News in English 17 Aprilie 2025, 21:30

A new multinational exercise on Romanian territory

Around 4.000 soldiers, with over 900 technical means, from 10 allied countries will take part next month in a new...

A new multinational exercise on Romanian territory
The National Audiovisual Council has removed several videos posted online
News in English 17 Aprilie 2025, 21:29

The National Audiovisual Council has removed several videos posted online

The National Audiovisual Council has removed in recent days a number of illegal online materials from TikTok, Facebook and X....

The National Audiovisual Council has removed several videos posted online
"Romania is and will remain a pillar of transatlantic cohesion on NATO's Eastern flank"
News in English 16 Aprilie 2025, 18:45

"Romania is and will remain a pillar of transatlantic cohesion on NATO's Eastern flank"

After the talks with the delegation of American congressmen, Prime Minister Marcel Ciolacu emphasized in a press release that...

"Romania is and will remain a pillar of transatlantic cohesion on NATO's Eastern flank"
Recently recovered Dacian bracelet on display at the National Museum of History
News in English 16 Aprilie 2025, 18:44

Recently recovered Dacian bracelet on display at the National Museum of History

From Wednesday, April 16, another Dacian gold bracelet, recovered by Romanian judicial authorities at the end of last year,...

Recently recovered Dacian bracelet on display at the National Museum of History
US Congress delegation met with Ilie Bolojan
News in English 15 Aprilie 2025, 16:52

US Congress delegation met with Ilie Bolojan

Eight members of the United States Congress, Democrats and Republicans, met this morning in Bucharest with Acting President...

US Congress delegation met with Ilie Bolojan
Romania has the fourth lowest minimum wage in the European Union
News in English 15 Aprilie 2025, 16:51

Romania has the fourth lowest minimum wage in the European Union

Romania has the fourth lowest minimum wage in the European Union, equivalent to €814. At the bottom are Bulgaria,...

Romania has the fourth lowest minimum wage in the European Union