Ctrl Bk To Also Approve Romanian Bks 2nd Tier Management

Banks' second tier managers, such as treasury and arbitrage heads or risk managers, will also be approved by the National Bank of Romania, or BNR, like the executive management and administrators of the credit institutions.

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The central bank plans to change the law regarding banking institutions, so that the banks to need BNR's approval on the managers in treasury and arbitrage departments, internal audit, lending, retail and corporate departments, risk management and accountancy departments, banking sources stated Tuesday.

Romanian Banks Association head Radu Ghetea said that the association's management will meet Friday and present its official opinion on the issue.

In October, central bank’s officials spoke about suspected market manipulation attempts by bank dealers, on the backdrop of speculations on the forex market, pushing the leu demand over the necessary volume under normal circumstances.

Following the scandal, UniCredit Tiriac Bank treasury manager Bogdan Mihoc resigned.

Romania’s Competition Council also started an investigation on the market of banking and inter-banking services over alleged agreements between lenders.

The central bank also criticized back then that certain dealers or treasury managers publicly express their opinion on the central bank’s monetary policy and on markets' evolution, given that they are also players on the monetary and forex markets, being subject to conflict of interests.

According to banking law, persons in charge with banks’ administration and executive management should have a proper experience and reputation, and be approved by the National Bank of Romania.

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