Banks fined 710 million euros for ROBOR manipulation - Impact on pensioners

The Competition Council has imposed record fines totalling 3.73 billion RON (approximately 710 million euros) on a group of ten major banks for anti-competitive practices related to the manipulation of the ROBOR index. This decision has significant implications for millions of Romanians, particularly for pensioners and elderly individuals who hold loans or savings.

ROBOR (Romanian Bank Offered Rate) is the reference index used to calculate interest rates on the majority of RON-denominated loans in Romania. Manipulation of this indicator has directly affected loan costs and the returns on bank deposits, negatively impacting the purchasing power of pensioners.

Consequences for seniors with loans and savings

Seniors who have taken out mortgage loans, consumer loans, or refinancing arrangements were directly affected by these practices, potentially paying higher interest rates than would have resulted in a competitive market. Additionally, pensioners with bank deposits may have received lower returns on their savings.

The sanctioned banks have 60 days to submit concrete plans for eliminating their anti-competitive practices. These measures will be assessed and approved by the Competition Council to ensure the proper functioning of the banking market.

The decision may be challenged before the Court of Appeal within 30 days of the communication of the written reasoning. This sanction marks a significant milestone in the protection of banking consumers, including the vulnerable segment represented by pensioners and elderly individuals.