How has retail banking changed after the crisis?

The emergence of a new wave of loan restructurings with the endorsement of the measures to cut budgetary expenses, as well as the costs brought by new regulations are bankers’ main headaches this summer. While in spring most bankers announced two-digit growth targets for the lending segment in 2010, in mid-2010 most would settle for marginal growth, as the economy will most likely not recover from recession and funding demand is not showing any signs of picking up. Bankers reckon they must regain clients’ confidence, shattered by recent years’ experience, but also criticise recent regulations for retail lending, meant to ensure greater transparency. “We expect a second wave of loan restructurings in the wake of these moves. I believe the banking system can successfully face this,” said Sergiu Oprescu, Alpha Bank vice-president. Catalin Parvu, general manager of Piraeus Bank, also believes public sector employees will have trouble in paying instalments. As costs cannot be slashed, Parvu says banks need to try to boost their revenues, with fees as one channel. “I’m talking about providing more services for a higher number of clients, not counting just on loans,” Parvu says.