Bank bankruptcy procedures will be modified through an Emergency Ordinance, after the Government has long delayed adopting the stipulations requested by the International Monetary Fund. The decision has nothing to do with the soundness of domestic banks, which are not facing trouble, says Nicolaie Cinteza, head of NBR's Supervisory Department. "Solvency is good at system level, as well as at individual level, so that I do not see any problem. Everything is linked to the IMF agreement," Cinteza said. The solvency indicator, measuring banks' equity capital adequacy against assumed risks, stood at 14% last December, according to NBR's latest data, compared with a minimum required level of 10%. Cinteza says the indicator will climb to above 15%, after banks submit audited reports for 2009. The Government yesterday discussed the EO draft for the modification of regulations on lending institution bankruptcy, with the main introduced stipulations being the need for NBR's approval to start the procedures opening, as well as shorter decision deadlines.
Bank bankruptcy procedures will be modified through an Emergency Ordinance, after the Government has long delayed adopting the stipulations requested by the International Monetary Fund. The decision has nothing to do with the soundness of domestic banks, which are not facing trouble, says Nicolaie Cinteza, head of NBR's Supervisory Department. "Solvency is good at system level, as well as at individual level, so that I do not see any problem. Everything is linked to the IMF agreement," Cinteza said. The solvency indicator, measuring banks' equity capital adequacy against assumed risks, stood at 14% last December, according to NBR's latest data, compared with a minimum required level of 10%. Cinteza says the indicator will climb to above 15%, after banks submit audited reports for 2009. The Government yesterday discuss