Fitch Places Romania In Highest Bank Systemic Risk Category

Fitch Ratings on Monday placed Romania in the highest macro prudential risk category (MPI 3), due to accelerated lending growth and the rise in the domestic currency in the first half of last year, according to the agency’s Bank Systemic Risk report.

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“Romania had one of the highest rates of real credit growth in emerging Europe last year and it shows no sign of slowing,” Fitch said.

The volatility of the exchange rate constitutes a risk for the stability of the Romanian economic and financial system, especially since 55% of the lending is in foreign currency, analysts said.

Fitch analysts warned Romania might fall into a higher prudential risk category ever since September last year.

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