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Retail lending, banks' only hope in Q4

Autor: Razvan Voican

16.11.2010, 00:10 9

Corporate lending will not pick up by yearend, withconstructions, real estate deals, tourism and retail on banks'"black list".


Large companies are reluctant to embark upon new investmentprojects, fearing new risks, and as a result demand for long-termloans is set to drop significantly in the last quarter of thisyear, together with all the other types of funding, according tothe conclusions of a survey the NBR carried out among the 10largest banks in terms of lending market share.
Under the circumstances, the trend of easing up lending standardsthat seems to be building up under the pressure of competition, haslittle relevance when it comes to spurring demand.
The only field lending institutions are happy to fund is energy,and here there are also more investment projects, "green energy"projects included.
Whilst in terms of corporate lending, expectations are grim for thelast quarter of the year, banks are counting on reviving demandfrom individuals, both on the segment of real estate loans, as wellas of consumer ones.
Promotional offer campaigns will also play a role here, with somebanks having already entered the race.

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