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
The World Bank is seeing a surge in demand from borrowers seeking the Bank’s expertise to mitigate currency and interest rate risk.
more »
The European Commission has approved under EU state aid rules a Lithuanian package intended to stabilise the markets as a response to the global financial crisis.
more »
Total cereal production in 2010 should be close to the average from the last five years. While the yield per hectare will be 5% above average, overall cultivated areas have decreased.
more »
According to the unaudited data, AB Bank SNORAS profit prior to provisions and tax exemption within the first half of this year comprised LTL 51 million, the bank formed almost LTL 48 million provisions.
more »
The European Commission today approved two applications from Denmark for assistance from the EU Globalisation Adjustment Fund (EGF).
more »
The European Investment Bank today signed two loans for a total amount of EUR 150 million in support of small and medium-sized enterprises (SMEs) in Turkey.
more »
On 23 July 2010 the Board of the Bank of Lithuania permitted Bank SNORAS to register a change to the articles of association related to the increase of the authorized capital of the bank by LTL 82.3 million up to LTL 494,217,107.
more »
Heads of State and top officials from the Central American Integration System and World Bank Group President, Robert B. Zoellick, agreed to join efforts towards regional cooperation and integration and adopted a comprehensive agenda that includes an action plan with more than 20 specific measures.
more »
The Executive Board of the International Monetary Fund (IMF) today approved the full cancellation of Haiti’s outstanding liabilities to the Fund, of about SDR 178 million (equivalent to US$268 million).
more »
The Executive Board of the International Monetary Fund (IMF) today completed the third review of Latvia's performance under an economic program supported by a Stand-By Arrangement (SBA).
more »