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Bks Risk Helping Clients Too Late – Romanian Ctrl Bk Gov

Banks had exaggerated reactions, although partly motivated, and might decide too late to help their customers, central bank governor Mugur Isarescu said Wednesday.
Bks Risk Helping Clients Too Late - Romanian Ctrl Bk Gov
09 sept. 2009, 15:55, English

„Banks overreacted one way and the other. I’m not saying they didn’t have their reasons. But when they wake up and decide to help their clients, it might be too late. It takes more care and flexibility,” Isarescu said.

The governor said the parent banks’ „exaggerated generosity”, including in September 2008, and later, the overreaction of the banking system, led to the gap between the economic evolution until the fourth quarter of last year and the subsequent evolution.

„Parent banks were extremely generous until last September. Certain banks were sending love letters to the customers, inviting them to take loans based on their ID. This is why the gap was so sudden,” Isarescu also said.