The Influence of the Brexit Process on the Banking System in Romania

Authors : Octav NEGURITA

Pages : 37-54

View : 15 | Download : 8

Publication Date : 2018-04-10

Article Type : Other Papers

Abstract :The possible exit of Great Britain from European Union, even in the context of a relatively special status of British banking sector within the Community banking system, cannot remain without effects on the European financial system and thus on the Romanian banking system. The future process of adopting the euro in Romania will bring some changes, as it demands to transform certain mechanisms within the Community’s financial and banking system. At European institutional level, the notion that a financial integration at Community level being not complete without the adoption of the single European currency is becoming more and more prevalent. It should not be ignored that the exit of this bloc from the community block may have possible effects on the foreign currency loans market. Similarly on the loans in lei too, even when we ignore less developed nature of interbank foreign exchange market. Changing interest rates as a policy instrument of monetary policy, both at the ECB level and at the NBR level will have limited effect.
Keywords : Negotiation, eurozone, convergence, solvency, vulnerabilitieS

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