IMF: Tests Confirm Soundness Of Romania's Foreign Bks
May 20 2009 - 11:44AM
Dow Jones News
Stress tests conducted on Romania's nine largest foreign banks
confirm the institutions are well-capitalized and possess
sufficient liquidity buffers, the International Monetary Fund said
Wednesday.
Still, the banks - which include the National Bank of Greece
(NBG), UniCredit Group (UNCFF) and Societe Generale (SCGLY) - plan
to increase minimum capital adequacy ratios at their Romanian
subsidiaries to 10% from 8% as a precautionary measure.
The move aims to "help Romania's banking system to weather the
current crisis better, support investor confidence and guide the
economy to a sustainable long-term growth path," the IMF said.
Romania earlier this month secured a two-year $17.1 billion IMF
loan package to help it deal with a decline in capital inflows and
to correct fiscal imbalances. It is among many Eastern European
countries that have sought IMF aid in the wake of the ongoing
financial crisis.
-By Meena Thiruvengadam, Dow Jones Newswires; 202-862-6629;
meena.thiruvengadam@dowjones.com