Beyond the problem of a lack of confidence in the banking system, fueled by the recent financial crisis and the shortcomings it highlighted, the dissatisfaction about the spread between the loan and deposit interest is growing in Romania.
“I think we need to be receptive to what our customers say. When it comes to confidence and margins. If we put that in the context of the financial intermediation rate which is at an all-time low, we must be professional and do something about it,” Bogdan Neacsu said on ZF Live.
“Our spread is 5 to 6%. Probably a 5.5% net margin. The money is there in the banking system, to send it into the economy you must make sure it goes exactly where it is needed. You can’t do it any cost, obviously. We must find that particular solution that facilities financial intermediation. I think an adjustment of the margins, that is narrowing of the spreads would ensure a greater financial intermediation. It’s true we need to look at costs and risks and find a middle ground. Whoever wants to stay on the market long term must adjust to the conditions of the market.”
The spread between loan and deposit interests for consumers stood at 6.88% in Romania in September 2018, compared with 2.15% in the euro zone and higher than in other countries in the region – 3.39% in the Czech Republic, 4.3% in Poland, according to Romania’s, Czech Republic’s and Poland’s central banks.
(English version by Loredana Fratila-Cristescu)