BCR Raises Consumer Loan Interests On Higher-than-expected Demand

05.18.2011 ZF English

BCR, the biggest domestic bank in terms of assets, has taken the market by surprise after having unexpectedly raised the interest rate for leu-denominated consumer loans, to 14.5% a year, thus signaling a turning point after a period when promotions had driven borrowing costs down.

The reason of this correction? Demand topped expectations at this price level.

"There was a promotional cost campaign and now we've adjusted pricing (the level of interest rates - e.n.) as demand beat expectations. We haven't reverted to pre-campaign prices, though", BCR representatives commented yesterday.

While most large banks came up with promotional campaigns in the first part of the year, the effort has not been reflected in general statistical data.

The central bank's data further noted declining consumer loan amounts from one month to another, inclusively in March.