Bankers could further cut loan interests because they have enough cash, but for now they are waiting for client demand to return and are bracing for the resumption of lending with offers to refinance rivals' clients, concluded participants at a seminar organised by ZF in partnership with Alpha Bank, Salans law firm and Ensight consultancy.
"The banking system has emerged from the crisis and banks can afford, with the liquidity they have available, to come up with attractive funding offers. I don't think it's any mystery that we are granting refinancing loans now, but I hope this period of warming up will end soon because refinancing does not help restart lending," said Radu Gheţea, chairman of CEC Bank and of the Romanian Banking Association (ARB).
The volume of loans granted to individuals and to companies has stagnated at around 200 billion lei (49 billion euros) because of the lack of solvent demand, as well as amid a tightening of lending conditions. Bankers say, however, that corporate loan demand is starting to pick up, but that individual clients do not show signs of wanting to spend more.
"We have received increasingly more applications for loans for investments and I think the number of investments to boost production capacities will increase in the coming period considering the very good performance of industry and exports. The funding granted by banks will focus around companies this year and will tend to amount to loans for investments rather than for working capital," specified Sergiu Oprescu, Alpha Bank executive president.
Bankers could further cut loan interests because they have enough cash, but for now they are waiting for client demand to return and are bracing for the resumption of lending with offers to refinance rivals' clients, concluded participants at a seminar organised by ZF in partnership with Alpha Bank, Sal
