Romania Approves Bridge Bank Law For Struggling Lenders
Romanian government Wednesday approved the legal framework that will allow the central bank to create a bridge bank to manage and insulate financially troubled lenders.
The bridge bank will be financed by the central bank’s deposit guarantee fund and will be empowered to take over assets and liabilities of any insolvent bank for a period of up to two years or until ownership cane transferred to a suitable investor.
“Given the current economic situation in international markets and the increasing risks for the financial stability, it is of utmost importance to improve the instruments available to the central bank by implementing a package of measures aimed to stabilize troubled crediting institutions,” the government said in a statement.
The project was drafted after consultations with the International Monetary Fund.
Citește și
2 min
Iulian Tenchiu
34 min
Ștefan Stan
1 min
Iulian Tenchiu