Monday, October 6, 2008

Romania banks safe from crisis, monitoring

BUCHAREST, Oct 6 (Reuters) - Romania's banking system is safe from the world financial crisis for now and has excess liquidity, but the central bank is committed to ensure funds if needed, governor Mugur Isarescu said on Monday.

Speaking after an emergency meeting with Prime Minister Calin Tariceanu to discuss the impact on the economy of pre-election wage policies and the global financial crisis, Isarescu said:

'The banking system in Romania is stable, safe and we do not foresee major emergency changes ... in the following period.

'But ... we are ready to ensure liquidity if the Romanian banking system needs additional liquidity,' Isarescu said.

He said banking liquidity was ample and that the leu's recent steep falls had been within normal limits and raised no 'severe concerns'.

Isarescu said banks in Romania have stayed clear of risky derivative instruments largely because of 'the central bank's stuborness to keep prudential regulations pretty severe'.

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