Romanian Ctrl Bk Thumb Down Becali Bank Creation

According to the rules for the authorization of credit institutions, upon the creation of a bank, the central bank analyzes the source of the funds used as capital, as well as the transparency of the source for these funds, the solidity of the shareholder’s financial situation, or their ability to financially support the credit institution, if necessary.

Other criteria considered are previous associations in banking activities and other commercial activities, the integrity and reputation of the shareholders in the business community and the relevant stakes held by the shareholders in other structures.

In addition, the sums used for the share capital need to come from self funding and they must not be sums borrowed or made available, regardless of the method, by other entities, except sums allocated to branches by mother companies, from their own sources.

The central bank can reject the request if individual shareholders were involved in investigations or administrative or judiciary proceedings, in the past 10 years, which ended in sanctions or interdictions, or if they are currently involved in such investigations or proceedings.

The request is also rejected if the source for the funds cannot be established or if the justification is insufficient.

Becali said late March he submitted literature with the central bank, for the creation of a bank that would have a share capital of EUR30 million.