Actions of National Bank of Romania on Bank Liquidity

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Abstract
The central bank’s action on bank liquidity implies the action on the amount of currency issued by the central bank that banks can acquire in their mutual relationships, and on its price, which is the action on the interest rate. In order to respond to banks’ treasury needs, the central bank acts on the money market through restrictions on refinancing options and handling reserve requirements. The paper aims to investigate the extent to which the NBR’s money tool system influences the mass and quality of credit granted by banks in the Romanian banking system. The monetary policy strategy adopted by the NBR had a strong influence on the macroeconomic variables of Romania

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