Banks: Ours will be the highest crisis costsPublish date: 16-12-2009
The change in the attitude of consumers is the main source of concern for businesspeople. "Fear of the future is standing in the way of Romanians to consume and to apply for loans," Octavian Radu, President and founder of the RTC group, told The Money Channel. Camelia Sucu, owner of the Class Mob furniture business, believes that unemployment will be the main factor to affect consumption in 2010. "The saying 'we'll make due' is no longer valid in the long-term," added Sucu.
For bank clients, the year 2009 "has put a lock" on the financing door. The balance of individual loans rose insignificantly compared to previous years, and is supported only by the government's First Home program. Corporate clients are either avoiding knocking on bank doors, or have yielded to very drastic new financing conditions.
"The year 2009 has demonstrated that the state of expectation, of loan blockage, means that the crisis will be increasingly costly. Everywhere in the world, the banking system is paying the bulk of the crisis costs," said Radu Gratian Ghetea, President of CEC Bank.
Bankers indicate that bankruptcies and involvencies, processes on a monthly rise, cannot but mean losses for financing banks. The National Trade Register Office (ONRC) reported that 17,670 companies have been dissolved, meaning a staggering 423.40 percent rise, compared to the same period last year. Over 127,000 companies suspended their activities, while 39,371 submitted to voluntary deregistration this year.
"We must do something to ensure that we have money to pay the crisis bill, because it is becoming increasingly difficult for us to foresee doing this. This bill cannot be paid by banks if they are lending only lto companies in their portfolios," added Ghetea.
- Insurance market stagnated in 2013 while GDP chare dropped to 1.3%
- The Romanian Leasing Market as of December 31, 2013
- Millennium Bank reports best results since its launch, helped by stronger banking income and cost cuts
- BCR cheapens First Home loans and lowers interest loans for loans in lei
- Millennium Bank's new Salary account clients receive up to 600 lei bonus and their utility bills' payment
- GarantiBank and Seamless introduce SEQR in Romania: the newest mobile payment solution
- Bancpost telecom services, now provided exclusively by Romtelecom and COSMOTE Romania
- Millennium Bank cards offer discounts in Domo stores
- BCR Supervisory Board reshuffles Management Board
- NBR decide to lower the monetary policy rate to 4.25 percent per annum
- Common appointments in Romtelecom and COSMOTE Romania
- Up to 5.5% annual interest rate for Millennium Bank's promotional three-month lei deposit
- Eurozone in recovery mode but gap between North and South still widening
- UniCredit Tiriac Bank and RBS Romania announce the successful completion of the retail clients' migration
- Millennium Bank grants First House loans in lei