BCR cuts interests on deposits again

BCR, the biggest bank on the Romanian market, has cut
interests on deposits in RON by around half a percentage point,
with the biggest deposit interest now amounting to 8.5% a year and
only for sums in excess of 10,000 RON. Interests on deposits in
euros have also been cut by 0.2-0.4 per cent, with the BCR offering
a maximum interest rate of 2.65% on standard 3, 6 and 9-month
deposits. This measure helps the bank consolidate its interest rate
margin as long as it puts off a reduction in credit interest rates.
Andreas Treichl, CEO of Erste, majority shareholder of the BCR,
said last week at a banking conference in London that boosting
interest rate margins is the main resource for covering the rise in
loan-loss provision costs.