Banks should focus more on corporate loans and pay more attention to how they train the personnel of their corporate banking departments, because financing the consumption is near saturation, BNR Governor Mugur Isarescu said yesterday, quoted by Mediafax. Isarescu also advised bankers to teach their employees how to read a company balancesheet – something many of them never had to do so far, because the bulk of the crediting activity was in retail.
“This sector (retail crediting) clearly nears saturation. Some of the bank presidents already have problems with the oversized bank network, which is only prepared for retail. (…) How should one stimulate consumption, when the problems were caused precisely by too much consumption,” the BNR governor stated. According to Isarescu, data about the indebtment rate of bankable population show there is a replacement field around 3-5 pc, so increases of the lending process by 50-60 pc are a thing of the past.
Isarescu stressed the need to improve the professional competences throughout the financial-banking system, so employees can cope with the change of business model and the start of a new economic cycle. “Never has the investment in professional training been more profitable than in times of crisis. This is a time of crisis, in fact a new beginning. (This is) a new cycle, and we must be prepared for a cycle,” Isarescu explained.
The BNR governor said that a thorough and continuous training is also necessary in the regulation and monitoring departments. He also stressed the need to put in relation the money earned by bank employees with their long-term responsibility.