Central Bank decided to keep the key interest rate and the reserve requirements

But, unexpectedly, BNR decided to keep also unchanged the level of reserve requirements for both RON and FX. Some have expected a cut of reserve requirements for FX, so that to the banks could have the liquidity to finance a thirsty budget. In our valuation model for the two banks, BRD-GSG and Banca Transilvania, we have assumed a further cut in reserve requirements by the end of the year which would have helped banks in improving its profitability