Banks under pressure to provide greater network efficiency

Banks can make a more efficient use of their existing networks through the sale of products, as an alternative to costly territorial expansion, which is becoming more and more expensive. “We may consider an intensive development, not only an extensive one,” says Lucian Anghel, chief economist at the BCR. Local banks operate their networks much less efficiently than credit institutions on neighbouring markets. Over the last few years, aggressive network expansion has led to significant salary increases, amid a shortage of skilled personnel, as well as increased rents, with banks beginning to feel the pressure of rising costs. Indicators such as the volume of assets or the volume of credits per banking employee for the local market are much lower than those on neighbouring markets. For instance, the volume of credits per employee in Romania is three times lower than in the Czech Republic, and four times lower than in Slovakia.