BCR clients refinance 120m euros' worth of loans with other banks

BCR, the biggest bank on the Romanian market, had 120 million euros' worth of mortgage loans refinanced with other banks, accounting for 8% of the portfolio, after the elimination of the early repayment fee, as part of Ordinance 50.

"The banking industry has been restructured and I think there are parts where this needs to continue. At the moment we have this famous Ordinance 50 and I think some parts of it are very good, such as the elimination of the early repayment commission, while others are not," Dominic Bruynseels, CEO of BCR, told a press conference organised on the occasion of the 20th anniversary since the bank's establishment. At present, the portfolio of mortgage loans is worth 1.5 billion euros, accounting for one third of retail loans granted by the bank.
BCR faced a wave of criticism from customers, after it chose to implement Ordinance 50, but held on to the overall cost of loans, although part of the fees charged in the past are no longer allowed under the current legislation.
Dominic Bruynseels believes it is necessary to change the way the economy works, which has so far been driven by internal consumption.
"I don't think it is necessary to change the way bankers lend, but the way the economy works. Consumer loans are not what is needed, but loans for investments," says the head of BCR. He anticipates lending will rise by 5-8% next year on the corporate segment and by around 5% on the individual segment.