Romania to strongly oppose creating EU single banking watchdog

BUCHAREST, Oct. 15 (Xinhua) -- Romania will "strongly" reject the idea of creating a single European banking watchdog, PresidentTraian Basescu said Wednesday, stressing that Romania's central bank is supervising the country's banking system.

"Romania will strongly reject this formula," Basescu said before leaving for Brussels to attend the European Council.

"Both the Constitution and the Romanian legislation are making the National Bank of Romania the only structure responsible for managing the national banking system," he stressed.

According to him, EU states have proposed the creation of a single European authority to supervise the banking system.

"We do not need a custodian from this viewpoint," Basescu added.

The president said Romania will back the "improvement of financial surveillance in the EU."

"Our standpoint is that public money can be injected in the banking system, and the costs are huge for countries with problems, but such a move doesn't create conditions for economic growth," Basescu said.

"We don't have solutions here, but we will draw attention to the need for a thorough analysis on the transfer of banks into state hands," Basescu said.

"We're not making any accusations, but we have the experience of state-run banking systems, and they tend to have low performance, " he said.