The Foundation For The Defense Of Citizens Against State Abuses (FACIAS) has asked the National Bank of Romania (BNR) to publicly communicate the measures taken at a time when bank interest rates are the highest in Europe and bank profits are absolutely huge. In 2023, for example, the profits of most of the top 10 banks increased by between 14% and 50%. Romanians are getting poorer, but the banks are getting richer!
Behind the mask of a brilliant banking system, the most profitable in the European Union, lies a harsh reality for Romanian citizens: a huge financial burden, fuelled by exorbitant interest rates and banking practices that push the population to the brink of financial survival. Romanian banks charge some of the highest interest rates in the European Union.
Twice the European average profitability for Romanian banks
According to FACIAS, while lending grew by 7%, bank profits grew by up to 50%, well above the modest 2% growth in national GDP in 2023. FACIAS found that Romanian banks are much more profitable than the European average, with a return on equity almost twice as high.
This discrepancy indicates that bank profits are supported by lending policies that charge borrowers disproportionately high interest rates compared to those offered on deposits. The state must take macroeconomic, control and regulatory measures to ensure that such abuses against citizens do not occur. In this context, FACIAS has also sent an official letter to the BNR to see how it is fulfilling its obligations to regulate and supervise credit institutions in order to ensure financial stability for Romanians, as guaranteed to all citizens by the Romanian Constitution.
Taxed the same, paid 3 times less
The request by FACIAS to the Romanian state to ensure fair taxation is based on several aspects, in addition to the high bank interest rates. For example, according to the data analysed, in Berlin, the German capital, commodities are sold at prices lower or at the same level as in Romania. However, incomes in our country are three times lower than in Germany. For instance, the average gross salary in Germany is €4,100, whereas in Romania it is €1,600. The minimum gross wage in Romania is €600, while in Germany it is €1,600. Consequently, Romanians pay the same price for food as the Germans, they pay much higher interest rates for bank loans, yet they earn three times less, which is a significant discrepancy.
In accordance with Article 47 of the Romanian Constitution, FACIAS calls on the authorities to take all necessary measures to ensure a decent standard of living for all citizens.
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