“Unfortunately, our banking system remains a prisoner of a somewhat outdated mentality in today’s world, where it’s more important that you have a broken down car in a field than a well-crafted business plan,” said Eugene Redulescu, director of the NBR’s Stability Office.
According to him, things are quite difficult here, although we have investment guarantee funds, even foreign investors come and offer guarantees for loans, although we are in a paradoxical situation where the ratio between loans and deposits in Romania is 70%.
“The EU average is 102%. This means that we have much fewer loans than the deposits that the banking system attracts. This means underutilization of resources,” he said.
According to him, increasing capital in the economy will require a change in mentality.
“I don’t think it would be so bad if the law 31 of 1990 was amended and at least prohibited the distribution of dividends if the company does not have at least the minimum capital at the level it should be,” said the BNR representative.
- If you have negative capital, no bank will accept you. You have nothing to discuss. You do not have the opportunity to start a dialogue for obtaining a loan.
Source: Hot News
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