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Weekly Lists
October 19, 2018 www.intellinews.com I Page 26
bne:Banker
Romania’s central bank endorses tighter retail lending regulations
Romania’s central bank announced on October 17 that it has en- dorsed tighter retail lending regulations under which the indebted- ness ratio should not exceed 40% of the net income of the debtor for local currency loans and 20% for foreign currency loans. Cur- rently, banks set their own regulations approved by the central bank, and the indebtedness ratio (market average) is 45%-47%.
Although the central bank played down the macroeconomic impact of the decisions, the improved macro-prudential regulations will come at some cost, particularly as they come at a time of economic slowdown and will further depress consumer and business confidence.
The new regulations will come into force as of January 2019. Loan requests submitted before the end of the year will be processed by banks based on the existing, milder, regulations even if the loan is extended after January 2019.
Iran’s Parsian Bank on October 17 rejected the US explanation for why it was targeted in the latest round of sanctions introduced by the Trump administatration against the Islamic Republic.
The US claimed that the private lender has activities related to a company connected to Iran’s military complex, something Parsian refuted. Trading insiders suggested that the US — attempting to throttle Iran’s economy to force Tehran to renegotiate its Middle East policies — has sanctioned the bank because it is the main account provider when it comes to food imported into Iran and plays a vital role in financing imports of medicines.
Serbia’s government on October 15 invited interested bidders to ap- ply to become a financial adviser for the planned sale of its stake in Komercijalna Banka, the second largest lender in the country.
The Serbian state is currently the bank’s largest stakeholder with
a 41.7% stake, while the European Bank for Reconstruction and Development (EBRD) owns 24.4% of the bank. Other shareholders include the World Bank's IFC Capitalisation Fund with 10%, DEG with 4.6%, Swedfund International with 2.3%, and a range of small- er stakeholders owning the rest.
The government plans to offer for sale its whole stake, while other shareholders may also decide to offer their shares, according to the invitation published on the finance ministry’s website.
US sanctions on Iran’s Parsian Bank slammed as impeding food and medicine imports
Serbia prepares for sale of second-largest lender