The new Tax Code will determine monetary policy reactions from the central bank, said Andrei Radulescu, chief economist of the local lender Banca Transilvania.

“We expect changes in the mix of domestic economic policies that will impact the financial stability,” he added, cited by local Hotnews.ro.

Recent developments in monetary indicators have confirmed the scenario according to which the banking sector performance will improve starting 2015. Non-government credit could stagnate in 2015 and then grow by 8.5% in 2016 and by 12.6% in 2017, Radulescu said.

The risk factors have, however, intensified in the past weeks, he said referring to the new Fiscal Code. The domestic political climate, namely the general elections in 2016, and the regional geopolitical tensions add to the current risk factors.

editor@romania-insider.com