BCR: We must open the lending tap, this is the profit driver

Banks need to unleash loans because this is the only way they can revive their profits, and the rising competition is going to push interest rates downward, says Oana Petrescu, the executive vice-president in charge with retail at BCR, the biggest domestic bank in terms of assets.

"From banks' point of view, there is a real need for lending to be resumed. The main driver of profit is lending," said Petrescu during a seminar organised on lending.

She says in the first quarter she noticed an improved loan sales dynamic against the same period of 2010, but increases were minor. However, there are many signs of optimism, as companies, especially those with export-related operations, can see their business pick up.

BCR last year registered an around 4% decline in the volume of retail loans, as new funding sales did not cover repayments. This year's goal is for the volumes to be at least stabilised. Instead, the bank managed a two-digit increase on corporate loans.