Romanian Banks Gloomy About Lending Revival In 2010 - Survey

"On an aggregate level, lending terms for companies were tighter in the second quarter, but the measures were less restrictive compared with a quarter earlier. On the backdrop of deteriorating loan portfolios, the banks (a net percentage of around 25%) increased the bonuses for riskier loans to adjust more easily to potential losses," the survey noted.

The central bank said mortgage and real estate loans remained in negative territory during the second quarter, contrary to optimistic expectations from banks, due to falling consumer confidence in Romanian economy and future income levels.

"Credit terms saw a mixed evolution, with small amplitude changes. There are signals of a possible easing for mortgage loans, while consumer loans would lie in the restrictive area," the survey showed.

According to the central bank, risk perception rose at the economy level, with construction and real estate seen as the riskiest sectors. Unlike large corporations, the small- and medium-sized companies were perceived somewhat riskier relative to the first quarter.

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