BCR, the largest bank on the market in terms of assets, yesterday increased interest rates on loans in both RON and euros granted to its retail customers. As a result, the cost of loans increased by half a percentage point.
Interests paid on savings will go up too, by 0.8 percent, in February.
Instalments of loans already granted in euros and RON will go up as well, as will those for loans granted from January 21. The only exceptions are loans whose interest rate is revised every six months; they will carry a higher interest rate as of March 31. Banca Comerciala Romana also announced that it will maintain the interest rate level for loans in euros offered with a fixed interest rate for the initial loan period. The bank grants mortgage credits in euros with a fixed interest rate over one or two years.
"The bank has to adjust its interest rates on euro and RON loans to ensure a balanced lending and credit risk policy. The rise in interests on loans is in line with the overall trend of the market," stated Dorin Cojocaru, executive director of the Retail Loan Department of BCR.
For the Camin BCR mortgage loans, the new variable interest rates can reach 13.5% annually in RON and 9.6% yearly in euros, whereas for the MaxiCredit consumer loans, rates amount to 12% annually in RON and 10.1% in euros.
The wave of increases in loan prices could continue this week with a similar announcement expected from BRD-SocGen.
"We too will probably operate interest rate modifications soon. We have already had discussions and could announce new interest rates this week," Sorin Popa, deputy general manager of BRD in charge of retail told ZIARUL FINANCIAR.
He added the bank would thus react to the "tense situation" on the international financial markets. "Lending needs to be granted in RON to avoid the foreign exchange risk that proves it can be an important factor," Popa explained.
Regarding interests on deposits attracted by BRD, the bankers say they are currently making assessments. "We have taken into account a number of scenarios and will act depending on how things develop."
A rise in loan prices was unavoidable, considering the trends that began on the domestic and international markets as early as last autumn.
Even though they are fuelled by lines of credit from their parent banks, the local lenders have already felt an increase in costs. For instance, BCR is largely dependent on Erste Bank, its majority shareholder, to get the necessary cash to be able to grant loans in euros.
At the same time, the National Bank of Romania's decision to successively increase the key rate on RON to 8 percent, which will probably be followed by a new increase in February, will eventually show in the cost of loans granted by banks in the domestic currency.
Some banks have started to increase the interest rates of deposits first, but a hike in credit prices is imminent, although many players are engaged in the competition for market shares, accepting narrower margins and implicitly profits.
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