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Ctrl Bker: Effects Of New Lending Rules To Be Analyzed Three Mos After Adoption

The National Bank of Romania told the commercial banks that the effects of the new household lending regulations will be analyzed three months after their adoption, Adrian Vasilescu, adviser of the central bank's governor, said Tuesday.
Ctrl Bker: Effects Of New Lending Rules To Be Analyzed Three Mos After Adoption
18 nov. 2008, 17:22, English

“We informed the banks at the introduction of the new lending policy that we will analyze its effects after three months,” Vasilescu said.
 
He added that the central bank waits for commercial banks’ comments on the rules.
 
Romanian lenders will request the National Bank of Romania, or BNR, to amend the regulation regarding household lending, as the new rules have blocked mortgage lending, the president of Romanian Banks’ Association, Radu Gratian Ghetea, said and published in tTuesday.
 
The new set of lending rules was approved by the central bank on August 19 he Official Gazette on August 22.  The period for the banks to modify internal lending rules expired in October 6.
 
According to the new regulation, the banks will calculate a debt degree for household lending based on revenues that do not exceed by more than 20% the ones declared to the Fiscal Authority in the previous year.
 
Also, the maximum monthly installment an individual can afford to pay back on a loan will not be changed until the loan matures, according to regulation.
 
For banks that don’t have their own lending norms, the debt degree will be lowered to 35% from 40% of the client’s income.
 
According to the former set of regulations, banks with individual lending system applied a maximum debt degree of 70% of the net salary, with a reduction of some minimum spending from the client’s income.