Bankers say they will turn on retail lending spigot just a little

Bankers do not expect to grant too many retail loans this year and say housing and consumer loans will increase by around 10% in 2010 after stagnating last year. Yet, there are banks that have set more aggressive growth targets in a bid to gain market share, taking advantage of the weakness of some rivals under pressure to slash costs. "On the retail lending segment, this year will not bring significant increases given the current economic context and the population's uncertainty with regard to incomes and jobs," says Gabriela Nistor, executive retail manager with Banca Transilvania. She expects the retail loan market to go up by 10-12% and her bank to see growth at least as high as the market's. A higher increase could be registered, though, on the segment of real estate loans, where bankers hope for a positive impact from the "First Home" programme. On the other hand, Garanti Bank, the domestic subsidiary of one of Turkey's biggest financial groups, targets a 40% increase in its portfolio of loans aimed at the population.