Household Lending Mkt Will Reach Saturation – Official

"Retail lending will reach saturation as demand will equal supply, and banks will be on the lookout for new niches, and the next one is that of SMEs," Ghetea said in a conference organized by the Romanian PR professionals association.

 

He said that 4-5 years ago, banks were skeptical when a person entered a bank to request a housing loan, but individual lending is now “booming, and the central bank sometimes has to even step in to slow it down".

 

According to Ghetea, SMEs are undergoing natural selection after Romania’s accession to the European Union. Out of Romania’s about 700,000 SMEs, about half will have to close or change their focus, as many will not be able to meet European requirements in terms of product quality, sanitary safety or environmental conditions.

 

"Banks are very interested in funding SMEs ad especially in localities with less than 50,000 inhabitants," Ghetea added.