Banks in Romania to be directly supervised by ECB

Representatives of Romania’s Central Bank BNR will begin discussions with experts from the European Central Bank ECB to establish the local banks that will be directly supervised by the European institution, Banca Comerciala Romana (BCR), BRD and Banca Transilvania being targeted first, according to Virgil Dăscălescu, director of BNR’s Stability Department. “Usually, the three largest banking institutions are supervised by ECB. (…) Because the Romanian banking system is dominated by banks with parent banks in the euro area, the subsidiaries might be considered significant and directly supervised by the European Central Bank under the close cooperation. (…) The Single Supervisory Mechanism entered into force on November 4, 2014, and some subsidiaries in the euro area will be directly supervised by ECB,” said Dăscălescu, cited by local news agency Mediafax. Irina Popescu, irina.popescu@romania-insider.com