Bankers: Lower cash reserve ratio could help economy revival

Last week, bankers met Prime Minister Calin Popescu Tariceanu, to discuss ways to cope with the international financial crisis. Several suggestions were made, including lowering the CRR, which are limiting lending. 

"It was proven that, amid crisis, the current level was useful, but, if we plan a revival, our suggestion is that funds blocked in the reserve should be released," Ghetea said. 

Banks are compelled to have CRR worth 40 percent of foreign currency liabilities and 18 percent of lei liabilities, according to BNR regulations. The CRR for lei was lowered by two percentage points on October 30. According to analysts, this allows banks to use a furher RON 2 billion (€0.53 bln) for lending. 

Furthermore, several bankers say the CRR should be used to buy state bonds, while others favor financing for housing or SMEs, according to Ghetea. 

Other bankers said that economy revival can only be made through constructions, mainly infrastructure works. "I am talking about highway construction, about roads and utilities such as water and sewage networks and gas pipelines," Ghetea added. (NewsIn)