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Romanian Ctrl Bker: People Shouldn’t Withdraw Deposits, No Bk Has Problems

Deposits in the Romanian banking system are safe, as no bank is confronting liquidity problems for the moment, the head of the National Bank of Romania’s supervision department Nicolae Cinteza said Wednesday.
Romanian Ctrl Bker: People Shouldn’t Withdraw Deposits, No Bk Has Problems
08 oct. 2008, 18:01, English

Cinteza said that bank withdrawals based on market rumors would be a mistake as the central bank is committed to support the banks.

"I assure you that absolutely no bank has liquidity problems. (…) We are ready to step in and support any bank if it has problems driven by withdrawals following market rumors," Cinteza said.

However, the central bank official admitted there was a tendency for withdrawals over the last period due to market rumors.

"Withdrawals are increasing in absolutely every bank at this moment. It is not a significant growth, but is visible," Cinteza said.

On Tuesday, the EU finance ministers agreed to increase the minimum deposit guarantee to 50,000 euros, from 20,000 euros in order to increase depositors trust in banks.

Romanian Finance Ministry representatives told Mediafax that European ministers’ decision would become mandatory only after it gets the European Council approval.