Volksbank, one of the market players that enjoyed one of the fastest rates of growth last year, plans to reach a 10% share of the real estate lending market by releasing new products, including related non-financial services.

Volksbank currently holds around 7% of the real estate lending sector, according to its own estimates. The bank ended last year with assets worth almost 1.4 billion euros, corresponding to a 2.7% market share.

"The interest rate increase will come to an end at some point. When this occurs, customers will be able to benefit from better services. We must understand customerse expectations are increasing and we should constantly attempt to improve our services," said Gerald Schreiner, Volksbank chairman, in an interview with ZF.

Volksbank has positioned itself as an aggressive competitor on the retail market in recent years, particularly through its pricing policy, at many times spearheading interest rate reductions. In fact, the bank is now offering RON-denominated real estate loans with a 5.95% interest rate per annum, an all-time low.

Schreiner says "therees still room" for further interest rate cuts, but these cannot be operated for a long time, especially in terms of foreign currency financing, given the rising interest of the euro on international markets. Instead, a reduction of the minimum compulsory reserves, imposed by the NBR, may pave the way for cheaper RON loans.

This year, however, Volksbank plans to launch new products, which are going to combine the financial services provided by the bank with non-financial services from external partners. Schreiner considers such services will practically make for a price reduction as customers are ultimately burdened with smaller costs related to the real estate investments they make.

He also mentions the launch of a new real estate loan in the second half