Lending growth still weak, clients more sheltered from abuse

A new start for the banking market: though not much has been left from Ordinance 50 on old retail loans, the kind of abuse against clients registered so far will no longer be possible. The possibility of loan refinancing will tighten competition among banks, and clients will be able to shun too high costs.

After two years in a row when the state has been banks' main client for lending, and private funding has focused on the segment of large corporations, 2011 will drive bankers to finding ways of boosting balance sheets thinned out by the crisis.
Banks whose image has not been tarnished by the scandal of abusive costs uncovered by Ordinance 50 will be able to profit by attracting disgruntled clients from peers, expanding their market share.
New loan growth outlooks are still limited, with analysts expecting the total amount to rise by less than 10%, with corporate lending still as the engine.
Managing bad loan portfolios will still be a challenge for bankers, who could finally see the volume of overdue payments peter out, depending on the trend of the economy.