The bank took this decision because it has more resources in lei for this kind of loans. BRD gives consumers only exceptionally loans.
Volksbank gives only personal needs loans in lei. Bank’s official said that decision was taken because the bank has largerr resources in lei for this kind of loans and, also, because this type of loans granted in euro were more expensive than in lei. The effective cost of the personal needs loans granted in euro was 22%. The effective cost of the loans granted in lei is 21%.
The consumer loans in euro won’t be available in the bank’s offer at lest until the end of the year. “The measure is for a certain period of time. - until the end of the year we will make a decision. We’ll see meanswhile”, said the communications manager of the bank, Alina Fereta.
Volksbank had concentrated especially on the mortgage loans. The bank didn’t join the club of the aggressive actors in the field of consumer finance, but neighther in the field of deposits.
Other credit institutions limited granting the consumer loans in euro in order to protect these clients. “BRD stopped the lending in foreign currencies at the consumer loans. (...) It’s made only in an exceptionally manner”, said the BRD’s director general adjunct, Sorin Popa. The decision was taken a few months ago.
Although, on the Romanian market are bank that never granted consumer loans in foreign currencies. For example, Banca Transilvania had this strategy. On the other hand, Volksbank related its decision to the BNR policy. “Volksbank Romania supports National Bank of Romania policy regarding the limitations of the consumer loans in foreign currencies”, was specified in the credit institution press release.