Banks are not rushing to slash loan interests and say there is no demand from clients anyway.
All bankers are glad the NBR cut interest rates by half a percentage point, to 7.5%, but when it comes to them reducing RON loan interests, they reply interest rates for clients will only be reduced gradually and in small steps and they continue to blame the lack of demand.
While Valentin Lazea, NBR chief-economist says "the ball is now in banks' court", bankers maintain the NBR would need to enhance its interest rate reduction signal.
"The NBR surprised us in a pleasant way. The move is coming late, but it's good, anyway. A further similar step would be a sign of professionalism, but I do not believe it will come any time soon," states Misu Negritoiu, general manager of ING Bank Romania.
Bankers' problem is the high level of interest rates on the interbank market, clearly above the NBR's interest, meaning higher financing costs. "(...) Should banks quickly decide to cut RON loan interests, this would not boost lending because many people are still fearful, there is the perception that it is from now on that the crisis fallout will emerge. At any rate, NBR's move is a good signal for the start of the year," comments Claudiu Cercel, vice-president for financial markets with BRD-SocGen, the second largest bank on the market.
Rasvan Radu, chief executive of UniCredit Tiriac Bank, says RON loan interest rates are set to go down a little, but not enough. He believes NBR's move could also be meant to ease the Finance Ministry's burden.
Lucian Croitoru, the adviser of NBR governor Mugur Isarescu, states banks need to cut loan interest rates to encourage entrepreneurs to come with investment projects.
BCR, the biggest bank domestically, sees NBR's move as a signal for an ongoing gradual reduction of interest rates.
Banks are not rushing t