Demand for mortgage credits far from being covered

Mortgage credits are expected to be the most in demand product on the banking market over the next few years, anticipates Paul Mylonas, chief economist and strategist with the National Bank of Greece (NBG) Group. "Despite the spectacular growth rates seen over the last few years, the market is still underbanked and penetration is low, especially on the segment of mortgage funding, therefore indicating that it has a very high potential," stated Mylonas. He says the Romanian banking system is growing faster than expected. "In particular, retail banking is catching up with other markets in the region, at faster rate than expected." In terms of macroeconomics, the NBG's chief economist mentions the "remarkable reduction in inflation." However, he estimates that the inflation will see a spike next year, an opinion shared by local analysts, as well, and also mentioned by the NBR Governor as a possibility that cannot be ruled out but should not be regarded as a "drama".