Raiffeisen Romania sees weak demand for bank loans.

By bne IntelliNews May 27, 2010
The demand on the credit market decreased significantly and this is not surprising given the low level of consumer confidence, the head of the third largest local bank Raiffeisen Romania, Steven van Groningen explains in a comment that might be related to the central bank's rhetoric urging for more bank financing as a key driver for economic recovery. Central bank officials have repeatedly stressed that they did their best, including cutting the policy interest rates, for duelling bank lending - which still remains at very low level. Urging banks to make more loans is not a reasonable policy against crisis, firms van Groningen. The time for cheap lending is over, he furthered, explaining that the banks incur high risk and financing costs he argues. The banks on the local credit market reported healthy EUR 100mn net profit in Q1 and the annualised ROA returned to 0.55% -- the best performance since Q4 2008.

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