Ghetea: Romanian Banks “Warming Up” For Lending Restart

04.20.2011 By Florentina Dragu

Romanian banking system is going through a “warm-up” period, when the lenders provide mostly refinancing services, but the situation must change so that private lending can recover, the head of Romanian Banking Association said Wednesday.

Romanian banking system is going through a "warm-up" period, when the lenders provide mostly refinancing services, but the situation must change so that private lending can recover, the head of Romanian Banking Association said Wednesday.

"I hope this warm-up period ends soon and we'd be able to receive good and interesting enough offers from our customers instead of refinancing loans," said Radu Ghetea.

Speaking at a seminar organized by Ziarul Financiar, Ghetea said the local system has shrugged off the crisis and the banks can once again afford to finance new businesses.

However, the banks will have to "pay the bill for the crisis" and they will no longer run profits at pre-crisis levels, Ghetea said.

"We must pay the bill for the crisis. I think the banking system is one of the few sectors in Romania to have understood that profits will no longer reach pre-crisis levels. The margins are down, as are interests and this clearly shows that we are willing to assume a lower profitability," he added.