Challenges of ROBOR Growth

The paper presents the evolution and causes of ROBOR growth between May 2013 and July 2018, bringing arguments that invalidate some opinions advocated by the pro-bank analysts' choir on the determinants of the ROBOR index growth. Our analysis led us to the conclusion that inflation in July 2017...

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Bibliographic Details
Published in:Finance : challenges of the future 2018-11, Vol.1 (20), p.53-61
Main Authors: Jenica POPESCU, Bogdan POPA
Format: Article
Language:English
Subjects:
average interest rate on interbank credits
bank liquidity
inflation
NBR interest rate
Online Access:Get full text
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Summary:The paper presents the evolution and causes of ROBOR growth between May 2013 and July 2018, bringing arguments that invalidate some opinions advocated by the pro-bank analysts' choir on the determinants of the ROBOR index growth. Our analysis led us to the conclusion that inflation in July 2017 to date means a small part of ROBOR's increase, and considering bank liquidity as responsible for ROBOR growth is inadequate. The ROBOR value is the effect of a bilateral oligopolistic market, and this value (imposed in the calculation of interest) distorts the credit market.
ISSN:1583-3712
1583-3712