The uncertainty and unpredictability of the financial-banking legal framework is the main risk bankers complain about, a quarterly survey conducted by the National Bank of Romania (BNR) reveals. According to the evaluation grid, the risk related to the above mentioned issues is ‘high’ and ‘difficult to manage’.
Other risk factors are the increase of funding costs, following the higher interest rates and/or the depreciation of the national currency. The consequence of this trend is the decrease of the capability to pay instalments, mainly for citizens and for SMEs.
The survey has identified also the systemic risk associated with the developments on the residential real estate market as being ‘high’ but ‘manageable’ and the risk coming from the accelerated growth of credit for households.
‘Moderate’ and ‘manageable’ systemic risks are related to the enhanced connection between the banking sector and the public sector, the modest development of credit for non-financial companies sector, given the environment of loose payment discipline, the sustainable potential of credit, with negative implications on economic prospects over medium and long term.
The analysis is conducted based on the answers from the most important 12 credit institutions, having 86% of the total assets in the banking system in November 2017, BNR informs.