Lender confidence and bank competition boost number of loans
Published:
17 September 2004 y., Friday
Small and medium-size enterprises (SMEs) have finally found a way to get hold of bank loans.
Banks have reported an increasing volume of loans to small and medium-size companies for the first half of 2004. Experts say the shift is because smaller businesses have gained the confidence of lenders and the entire sector has been doing better.
Ceska sporitelna, for example, lent 10.4 billion Kc ($400 million) to companies with annual turnover worth 1 billion Kc in the first half of 2004, up by 41 percent compared to last year. In the same period the bank lent another 5 billion Kc to entrepreneurs and small business with turnover below 30 million Kc.
Spokeswoman Vera Carna said the bank has also established special commercial centers in each of the country's regions to provide loans.
At GE Capital Bank the volume of lending to small firms was up 32 percent to 6.3 billion Kc compared to the same period a year ago. The majority of smaller clients borrow an amount of less than 10 million Kc and in the case of an investment loan pay back the loan in two to five years, said Jan Hainz, the spokesman for GE Capital Bank.
Jan Schiesser, an analyst at Atlantik Financial Markets, said two key factors are responsible for the loan boom. He said there is tough national and international competition on the market for bigger clients, leading banks to focus on smaller customers. Also, SMEs have learned to keep their accounting transparent, so it is much easier for banks to assess the loan, Schiesser added.
He said he expects the volume of loans will continue to grow sharply in the next two to three years, as the bottom line was very low.
Šaltinis:
praguepost.com
Copying, publishing, announcing any information from the News.lt portal without written permission of News.lt editorial office is prohibited.
The most popular articles
Today, the Commission published a Communication which outlines the most serious tax problems that EU citizens face in cross-border situations and announces plans for solutions.
more »
The European Commission has opened a formal investigation under EU state aid rules to examine a number of support measures, including several capital injections and shareholder loans, that the Hungarian authorities granted to Malév-Hungarian Airlines in the context of its privatisation and subsequent renationalisation.
more »
Internet and lax customs enforcement drive growth of 600 billion US dollar counterfeit goods industry.
more »
350 million people rose out of poverty in the past decade, but 1.4 billion are still extremely poor, says the latest report into rural poverty.
more »
New plan sets out action to reach 75% employment target for the EU by 2020.
more »
Research Ministers of the EU Member States and Associated Countries, together with the European Commission, are announcing in Brussels today three new pan–European energy research infrastructures.
more »
Algirdas Šemeta, Commissioner for Taxation, Customs, Audit and Anti-fraud, is visiting Moscow today to discuss ways in which customs cooperation between the EU and Russia can be reinforced.
more »
Following on from Monday's debate with ECB President Jean-Claude Trichet, MEPs on Tuesday adopted a resolution, by a show of hands, gauging the ECB's performance in 2009 and suggesting actions to be taken in view of the economic situation.
more »
The European Parliament today approved €10.5 million in European Globalisation Adjustment Fund aid to over 3,000 people in the Netherlands who lost their printing and publishing sector jobs last year, due to the economic crisis.
more »
A diamond-studded gold coin engraved with a picture of the Taj Mahal and worth 100,000 euros is unveiled at the Paris mint.
more »