As shown in the Financial Stability Report June 2019 published on June 5th by the National Bank of Romania, the financial stability has remained adequate since the release of the previous Report, yet the associated risks are on the rise, amid global economic and financial developments marked by heightened uncertainty, alongside the resurgence on the domestic front of the risk of an uncertain and unpredictable legislative framework in the financial and banking sector.
Continuă lectura „Financial Stability Report”New measures to address non-performing loans
On 18th of December, the European Parliament and the Council agreed a new framework for dealing with banks’ bad loans. They reached a provisional political agreement on capital requirements applying to banks with non-performing loans (NPLs) on their balance sheets. The deal will now be submitted for endorsement by EU ambassadors according to the Council’s press release.
Continuă lectura „New measures to address non-performing loans”
Monetary policy
The annual inflation rate remained relatively steady in March 2017, standing at 0.18 percent, against 0.2 percent in the prior month, in line with the NBR (National Bank of Romania) projection. Behind this stood the slowdown in the annual dynamics of fuel prices, which offset the effects of the faster increase in volatile food prices and of the higher adjusted CORE2 inflation rate (calculated by excluding from the consumer price index the following categories: administered prices, volatile prices, and tobacco and alcoholic beverage prices.), whose annual rate crept up to 1.04 percent, from 0.91 percent in February.