Romanian Bancpost CEO: Keeping Banking System Liquid, Solvent Is A Priority

Bogza also said the achievement of objectives and targets goes hand in hand with the economic evolution, adding a bank should target profit and growth in times of economic growth.

Moreover, he pointed out that stability becomes a priority when the economy is on downward trend, adding the evolution of the economy, which now faces uncertainty, will be decisive for banks in their attempt to achieve their targets.

"Banks are used to facing risks, which, in fact, can be measured and included in the loan price, but it is much more difficult to face uncertainty," Bogza said.

Bolojan: Întărirea flancului estic NATO, de la Marea Baltică la Marea Neagră, o prioritate

23:08

Ilie Bolojan anunță că România nu va dubla cheltuielile de apărare

23:06

He stressed that banks are no longer willing to provide lending for the real sector, which is seriously affected and has difficulty in reimbursing loans. He also said this situation triggers non-performing loans, which, in turn, affect banks and the lending process.

Bogza said the funds Romania received from the International Monetary Fund (IMF) will get into the central bank’s reserves, which will have more resources to protect the Romanian leu, if necessary.

He explained that, first of all, the low volatility of the exchange rate reduces uncertainty for banks, as well as for companies and private individuals when contracting loans.

Bogza also said, with respect to the 6.4% contraction of Romania’s gross domestic product in the first quarter of 2009 against the same period in 2008, that this situation seemed to have taken by surprise even the authorities and simply proved it is hard to make predictions under the current economic conditions.