Romania's central bank has called on the Competition Council to clarify the grounds for its record fines against the country's ten largest banks, warning that ambiguous public statements could fuel confusion and create risks for financial stability.

In a statement issued after the Competition Council imposed penalties totalling RON 3.73 billion (EUR 710 million) over alleged collusion in the fixing of ROBOR interbank rates, the National Bank of Romania (BNR) said additional explanations were necessary.

The central bank argued that the technical procedures involved in calculating ROBOR are "difficult to understand even by specialists" and warned that inadequate communication could have wider consequences.

The clarifications are needed in order "not to generate additional confusion, unrealistic expectations or unfounded accusations with effects on financial stability," BNR said.

The issue has gained political and legal significance after the Social Democratic Party (PSD) drafted legislation aimed at compensating borrowers affected by alleged manipulation, while lawyers have begun discussing possible lawsuits against banks. The Competition Council has yet to publish the detailed reasoning behind its decision.

"A number of unclear statements appeared both in the public information [issued by the Competition Council] that preceded the decision and in the subsequent comments [by Competition Council President Bogdan Chirițoiu], and questions were raised regarding the investigation," BNR said.

The central bank maintained that ROBOR movements primarily reflect monetary policy decisions and argued that banks followed the procedures governing the fixing process, which have not themselves been challenged by the competition authority.

BNR specifically requested clarification regarding references made by the Competition Council to "fractions of a percentage point" allegedly resulting from anti-competitive behaviour. The central bank asked how such assessments were made and what level of ROBOR the authority considers to have been appropriate.

Competition Council President Bogdan Chirițoiu said on June 10 that the Council had not estimated the precise impact of the alleged agreements between banks on the benchmark rate. He indicated that any distortion involved "hundredths of a percent" and added that the extent of damages, if any, could only be determined by courts in potential civil cases.

iulian@romania-insider.com

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