Speaking at a seminar, Isarescu said lenders overcharge loan fees by passing on “all sorts of bank costs” to their customers.
“This is possible because the competition is not strong enough,” he added.
Isarescu said a competitive environment doesn’t automatically translate into a large number of players in the system, but rather into powerful, healthy competitors who can handle their costs and subsequently learn how to lower the costs transferred to their customers.
“Despite certain progress, it’s obvious that the financial and banking systems require a higher degree of competitiveness,” Isarescu said.