Many banks prefer old crediting norms

Many banks have come to the conclusion that the large majority of clients with low revenues will not be able to afford the credits with a zero down payment and increased indebtedness, in accordance with the new norms, due to the level of the minimum subsistence basket recommended by the NBR (National Bank of Romania), and to higher costs. Therefore, they prefer to use the old crediting products, says Radu Ghetea (photo), president of the Romanian Banking Association (ARB). “Those who have become tired of trying in vain to take out credits with no down payment from the two banks that have received the approval for the new norms are ultimately opting for old crediting products. Many clients have been attracted to the new banks, but this has not resulted in more credits being granted. In fact, the old norms are sufficiently flexible, the problem is that many clients have low incomes,” says the head of the ARB and of the CEC (Romanian Savings Bank). The NBR recommended that the indebtedness capacity of a client be established by adjusting the monthly revenues with a 735-RON subsistence basket for a family of three. Ghetea says the NBR’s answer to the ARB’s requests on accelerating and simplifying the approval procedure for the new norms is unsatisfactory. “Unfortunately, the response is not encouraging, but it is becoming clear that a battle against the NBR would be pointless. The numerous talks we have had with the central bank indicate that it wants to relax crediting, but only in very small steps,” stated Ghetea.