The banks sanctioned by the Competition Council in the investigation regarding the mechanism for establishing the ROBOR index reject the authority’s accusations and claim that they have always complied with the rules imposed by the National Bank of Romania. The credit institutions announce that they will challenge the decision in court, some of them calling the sanctions arbitrary, unfounded or based on an erroneous interpretation of the way the interbank money market works.
The banks will challenge the fines given by the Competition Council in court. Archive photo
After the Competition Council announced the sanctioning of the ten banks participating in the ROBOR fixing mechanism for violating competition rules, credit institutions reacted almost uniformly. All banks I reject the conclusions of the investigation and claim that their activity was carried out in accordance with the legislation and the regulations of the National Bank of Romania.
A common argument put forward by banks is that the ROBOR mechanism is strictly regulated and supervised, and the exchange of information on quotations is an inherent feature of the fixing system, not an anti-competitive arrangement.
At the same time, all the institutions that reacted publicly announced that they would challenge the decision in court immediately after the communication of the full reasoning.
ING Bank: “Deeply unfounded conclusions”
ING Bank Romania categorically rejected the conclusions of the Competition Council and the sanctions ordered, which they consider “deeply unfounded and based on a misunderstanding of how the interbank money market works”.
The bank’s representatives claim that the institution’s activity was carried out permanently in compliance with the legal regulations and applicable norms in the framework created and supervised by the BNR.
“After the communication of the reasoned decision, ING Bank Romania will resolutely exercise all legal avenues of appeal, having the conviction that it has acted correctly, legally and in compliance with its obligations towards customers and the market”the bank said.
CEC Bank: “The fine is absolutely unacceptable”
CEC Bank had one of the harshest reactions after the sanctions were announced. The institution announced that it “totally disagrees” with the decision of the Competition Council, which it considers “deeply unjustified, lacking a solid legal foundation and based on erroneous interpretations of market mechanisms“.
The bank categorically denies any allegations of ROBOR manipulation and maintains that all its contributions to the fixing process reflected actual money market conditions.
“ROBOR is a reference rate calculated on the basis of quotations submitted by participating banks, according to a rigorous methodology, supervised by the NBR. CEC Bank’s contributions to this process have always reflected the real conditions of the money market, without any illicit coordination with other participants and without any intention to artificially influence the rate level”says the bank.
CEC Bank goes further and talks about the existence of a possible institutional conflict between the Competition Council and the BNR, as administrator of the ROBOR index.
The institution also mentions a similar investigation carried out in 2008, in which the competition authority would not have identified any violations of the legislation.
“The fine represents one of the most severe levels of penalty under competition law. The application of any amount, regardless of level, in the absence of clear, direct and indisputable evidence of anti-competitive behavior, is arbitrary”the bank claims.
CEC Bank announced that it will challenge the sanction at the Bucharest Court of Appeal and that it is prepared to go “to the last available degree of jurisdiction”.
Raiffeisen Bank: The investigation would not have identified an agreement between the banks
Raiffeisen Bank claims that the investigation did not reveal the existence of collusion between participants in the ROBOR system and that the authority focused exclusively on the transparency of quotations.
“We note that the investigation did not reveal any evidence of the existence of an agreement between the banks to establish the ROBOR quotations. The only aspect indicated concerns the transparency of these quotations, this being an element that represents an intrinsic characteristic of the fixing system and by no means an option of the participating banks”the institution sent.
Raiffeisen states that the ROBOR mechanism operates on the basis of clear technical rules and that it will appeal the decision to demonstrate the legality of its conduct.
BRD: “Observance of the rules led, paradoxically, to a sanction”
BRD expressed its “firm disagreement” with the conclusions of the Competition Council and announced that it will use all legal means to challenge the decision.
According to the bank, its conduct has always been in compliance with the legal framework and rules governing the ROBOR mechanism.
“BRD has strictly complied with the rules and procedures governing the ROBOR rate, acting within the letter and spirit of the regulations in force. Surprisingly, we find ourselves in a situation where strict compliance with the regulatory framework has paradoxically led to a sanction”, the representatives of the institution sent.
BRD warns that the effects of the decision go beyond the legal framework and affect the image of the entire banking system at a time when it plays an important role in financing the economy.
ROBOR investigation: Bankers’ personal phones checked by competition inspectors
Banca Transilvania: “The decision has no basis”
Banca Transilvania took one of the firmest positions, stating that it “vehemently” rejects the report’s conclusions and that the decision has “no justification and no real basis”.
The institution also drew attention to the fact that the information on the sanctions appeared in the press before the official communication of the decision.
“We vehemently reject the report’s findings, reaffirm our innocence and believe the decision has no merit and no basis in fact. Beyond the financial implications, we are determined to defend our reputation”the bank said.
BT maintains that it complied with the law and market rules and believes that the sanctions ignore the regulatory framework applicable to the banking sector.
The institution also warns about the economic impact of the fines, estimating that the decrease in the capitalization of the banking system could affect the lending capacity.
UniCredit Bank: “Unfair and groundless decision”
UniCredit Bank criticized both the conclusions of the investigation and the way it was conducted.
“Our position is unequivocal: the Competition Council’s decision is unfair, unfounded and we strongly reject it. The way this investigation was handled shows that none of the technical and legal arguments presented during the hearings were actually analyzed”said the bank’s representatives.
The institution says it will present in court the evidence it deems relevant to demonstrate the legality of its behavior and says it has confidence in the impartiality of the judicial system.
Exim Banca Românească challenges the decision of the Competition Council
Exim Banca Românească rejects the conclusions of the investigation of the Competition Council and claims that its entire activity was carried out in full compliance with the national and European legislation applicable to credit institutions, under the supervision of the BNR. The bank says it has made available to the authority “a substantial volume of data, analysis and technical explanations” that would demonstrate strict compliance with the regulatory framework and principles of governance and transparency.
“We emphasize that Exim Banca Românească operates in full compliance with the legal and regulatory framework applicable to credit institutions in Romania and the European Union, under the supervision of the BNR, in accordance with European prudential and governance standards and respecting all the principles of integrity and transparency“, the bank’s press release states.
Exim Banca Românească rejects the conclusions of the investigation of the Competition Council and claims that its entire activity was carried out in full compliance with the national and European legislation applicable to credit institutions, under the supervision of the BNR. The bank says it has made available to the authority “a substantial volume of data, analysis and technical explanations” that would demonstrate strict compliance with the regulatory framework and principles of governance and transparency.
The institution criticizes the interpretations in the deliberation minutes, which it considers disconnected from the real mechanisms of the money market and from the role of supervision exercised by the central bank. In this context, Exim Banca Românească announces that it will contest the decision in court and will use all available legal means to support its position, expressing confidence that the courts will confirm the legality of its conduct. In parallel, the bank reaffirms its commitment to continue its activity with integrity, transparency and responsibility towards customers and the stability of the financial system.
Chirițoiu: The decision did not concern the regulations in the banking sector
The President of the Competition Council, Bogdan Chirițoiu, stated that the decision does not concern the regulations of the banking sector, but exclusively the behavior of the institutions during the analyzed period, being based on the violation of the competition legislation, including the European norms stipulated by the Treaty on the Functioning of the European Union.
10 banks and the Credit Bureau, verified by the Competition Council
“Our decision did not concern the regulations or policies in the banking sector, but is limited exclusively to the behavior of the banks during the ROBOR fixing period and is, of course, based on the finding of the violation of the competition rules, not of other norms. The sanctioning decision was taken unanimously by the Plenary of the Competition Council. The extensive public debates prior to the adoption of the decision are not usual and have generated confusion, which is why clarifications are needed.” said Bogdan Chirițoiu, the president of the Competition Council.
The fines applied are as follows:
- Romanian Commercial Bank: 577.36 million lei
- BRD – Groupe Société Générale: 412.47 million lei
- Banca Transilvania: 875.74 million lei
- OTP Bank Romania: 85.03 million lei
- ING Bank: 405.91 million lei
- Raiffeisen Bank: 442.49 million lei
- Exim Banca Românească: 96.49 million lei
- CEC Bank: 332.98 million lei
- UniCredit Bank: 431.03 million lei
- Intesa Sanpaolo Bank Romania: 28.1 million lei
- Libra Internet Bank: 45.86 millions of lei
