All the signals point to a process of disintermediation for the financing of local branches of by the parent-banks which is inherent, Mugur Isărescu, governor of the National Bank of Romania (NBR) said yesterday, at the annual conference of the Romanian Association of Financial Banking Analysts (AAFBR). He said:

"Banks which are extremely dependent on parent banks need to find alternative sources of financing".

Is this commandment something unusual?

When a company sets up an office, a branch in another country than its country of origin, does it intend to finance the new entity "pour toujours"?

Isn't it normal that in fact it wants to create a new profit center, that would be self supported financially?

Of course, it wants to self-support itself.

If the normal way to do things is to be self-supporter, than why does the Governor of the Romanian central bank announce, in a banker-targeted forum, that it is time for normalcy?

Perhaps he is in fact trying to tell us something else but he can't afford to?

Perhaps he lacks the words?

Perhaps he wants to say the opposite, that the funding of parent banks by their Romanian subsidiaries should stop?

* It is the local branches that provide funding to the parent banks, not the other way around

On June 16th, the BURSA newspaper wrote the following:

"The terms of the Vienna Initiative, the agreement concluded in 2009, which required the parent banks of the Romanian lenders to support their subsidiaries and not to pull out capital, seem to have been reversed in the case of the Greek financial groups, Japanese bank Nomura" states.

At that time, BURSA reported that the Nomura report said: "At the moment, the Romanian subsidiaries have been already supporting their Greek parent banks for some time" and "the loans granted by the Greek subsidiaries to paren