Raiffeisen analysts: higher NBR interest rate brings slower credit increase

The decisions of the National Bank (NBR) to increase the monetary policy interest rate, combined with a slower economic growth in the 2008-2009 period will primarily affect the dynamics of lending, and have less of an impact on the net interest rate margin for the overall banking system, say Raiffeisen analysts in Vienna. The experts point to the past few years’ experience, when Romanian banks proved that they could preserve their margins amid higher interest rates. “Due to the demand for credits, banks tend to transfer the credit interest rate increase to clients, and put off interest rate increases for deposits.” The context of the last few months, however, contradicted this theory, with banks facing the spectre of a risky reduction in liquidities in RON. Therefore, even those who claimed they were in a comfortable position joined in the general trend and increased interest rates for deposits in RON, with peaks of 11% a year. It is true, however, that many players have started to adjust interest rates for credits.