Banks forced to divide their clients into winners and losers

Banks are willing to help their default clients, but resort to the use of a variety of methods: loyal clients, who have been working with the lender for a long time, are given priority when it comes to loan restructuring. Moreover, the bank can go as far as looking for a partner to capitalize the client's business, to offer him a chance to get back on track, the Chairman of the Supervisory Board of UniCredit Tiriac Bank, Dan Pascariu, told Business Standard.

"Lenders are trying to find solutions for those who request the rescheduling of their loans. There are also desperate situations, in which rescheduling will probably not be possible. Unfortunately, banks are forced to play God, choosing the winners and losers," Pascariu said.

Lack of confidence in the financial system

Regarding the collaterals behind the loans, the official said that caution, even before the crisis, determined banks not to grant loans without a down payment of a minimum 25 percent in the case of mortgages. This means that the value of the loan is below that of the mortgage plus down payment, so, for now, lenders are not in the red in this respect. The great problem of lenders worldwide, following the collapse of Lehman Brothers, was the lack of confidence in the financial system.

On the other hand, although the fear of a liquidity crisis is part of the general essence of banking, according to Pascariu, the current situation has determined parent banks to stop financing their subsidiaries worldwide, with these now forced to fend for themselves.

standard.money.ro