Romanian Central Bank works on creating bridge bank to help banks in trouble

The Romanian Central Bank will work on regulations to create a bridge bank, which would take over banks under difficulty, according to Romanian daily Ziarul Financiar. The International Monetary Fund has asked the Romanian authorities to create procedures that would allow rapid intervention in case of banks in trouble. Romania should have done this by the end of October.

So far, the Central Bank had to wait until a bank went all the way to bankruptcy. The bridge bank, once established, could take over rapidly the deposits and loans of bank in trouble and ensure the continuation of activity with the public. The main objective of this bank would be to find investors willing to take over the assets. editor@romania-insider.com