Greek-based ATE Bank (Greek's Agricultural Bank), which entered the market almost two years ago, believes individual clients will act as the main growth driver for local branches, and plans to invest 3 million euros in network expansion and product development in 2008.

In the summer of 2006, ATE took over a controlling stake in Mindbank, one of the oldest private banks in the Romanian system, which had small-scale operations, and lacked the necessary resources for growth.

Since the takeover, ATE has appointed a new management team, launched its own brand onto the market and performed several capital increases to enable the branch network to grow.

ATE Romania will double its network, and targets 30 branches and offices by the end of the year. By 2010, the network should reach 55 branches, which will serve both individual and corporate clients.

"The investment programme targets network expansion and will also provide funding for major projects: the introduction of chip cards in parallel with the development of an ATM network, the creation of Online Banking, and a Call Centre," Alina Pascu, deputy general manager of ATE Bank, in charge of the retail division, told ZF.

At the end of last year, the bank had assets worth 167 million euros, while credits granted to clients accounted for 100 million euros.

Pascu, who became part of the bank's management team in March last year, has built a retail clients portfolio virtually from scratch, given that Mindbank's funding was traditionally aimed at small entrepreneurs.

In December last year, retail credits accounted for 17% of the bank's portfolio of funding, with the share expected to double in 2008, and reach 50% next year.

"For 2008, we target a 200% increase for our individual clients credit portfolio, aided by the development of new products both on the segment of mortgage loan