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
An aviation agreement has been signed today by the European Union and the Vietnamese authorities which will remove nationality restrictions in the bilateral air services agreements between EU Member States and Vietnam.
more »
The European Investment Bank marked the 50th anniversary of the Republic of Cyprus and its 30 years of activity in the country with a public ceremony celebrating the signature of a total of EUR 180 million for urban environment.
more »
In response to the financial crisis, the Commission has put forward legislative proposals to strengthen and expand existing tools for coordinating economic and fiscal policy in the EU.
more »
In the first meeting of the SME Finance Forum, possible means to improve the current situation of access to finance were discussed, such as the introduction of a grace period for firms in difficulties, the involvement of credit mediators and improved loan guarantees.
more »
The EU budget is no simple matter, but then no budget ever is.
more »
Parliament will be crucial in avoiding a “lowest common denominator” approach when helping to design the EU's new economic governance architecture, ECB president Jean-Claude Trichet told the Economic and Monetary Affairs Committee on Monday.
more »
With a multitude of language-related events taking place on or around 26 September, the main themes for this year's European Day of Languages are business and jobs.
more »
The EU disbursed today € 1.15 billion to Romania, the third instalment of a € 5 billion loan, which was agreed in May 2009 as part of a multilateral financial assistance package.
more »
The European Investment Bank has agreed to lend GBP250 million for the replacement, reinforcement and expansion of the gas distribution networks operated by Scotland Gas Networks and Southern Gas Networks.
more »
The bargaining positions of all players in the human food chain must be rebalanced, and fair competition enforced by law, to ensure fair returns to farmers and price transparency to consumers, says Parliament in a resolution voted on Tuesday.
more »