BCR: Unless growth returns in second half, we're in trouble

Dominic Bruynseels, the Briton who has been at the helm of the BCR since the summer of 2008, says 2010 was the toughest year in Romania, but that the second half of 2011 could be even tougher unless the long-awaited economic growth comes.
“A very tough period indeed would follow, that is why such a scenario must be avoided, and the Government needs to start spending on infrastructure investments.”
The BCR’s basic scenario targets a GDP growth of between 1 and 1.5%, largely driven by second-half activity, but there is also a pessimistic scenario, according to which public investments in infrastructure were yet to be seen and a prospective boom in the price of oil would deal a blow to the economy not just directly, but also to exports, by hurting demand on Western markets.
As far as the BCR is concerned, it managed last year to take corporate clients from rival banks by strengthening the relationship with these clients, by funding possibilities and by developing the ability to provide the service requested, says Dominic Bruynseels, CEO of BCR, the biggest bank on the Romanian market.
“There used to be ten or so banks fighting over this market, but now there are three or four, sometimes even two. We took some of others’ market by strengthening relationships with this type of clients, as well as by remaining on the market when others left it. We even grew on transactions, on cash management, because we have developed the capacity to deliver these services.”
This is how he explains the over 15% increase in the volume of corporate loans and implicitly the market share increase to 25% on the corporate funding segment.