The price of loans decreases faster than the price of deposits

The financing of businesses through various EU programmes and the economic environment will determine the banks’ development in 2014. This was said by Levon Hampartzoumian, Chief Executive Officer of UniCredit Bulbank, during the first annual conference “The Banks and the Business”. What is extremely important is the way in which the EU programmes are used, he added. On the discussed changes in the regulatory environment concerning banks, Levon Hampartzoumian commented: “There is no formal institutional proposal for changes in the regulation of banks so far, but there are some ideas among the discussed, which if accepted, would lead to serious imbalances and difficulties in the work of banks”.

“Most of all UniCredit Bulbank is a partner of the business, and programmes such as Jeremie are very important for us. Of course, the amount of the financing, provided by the Bank to the small and medium enterprises is much greater”, Tsvetanka Mincheva, Head of Retail Banking with UniCredit Bulbank, commented. Jeremie is a programme of the European Investment Fund, which gives opportunities for financing business enterprises with lowered requirements for collaterals and preferential rates of the fees and commissions. Tsvetanka Mincheva further explained that the Bank tries to serve every need of the businesses by providing the right product at the right time in which the investment is needed. This guarantees the success of both parties in the deal.

“The successful business needs to have clear target, because only in this way we will be able to find out the most flexible scheme for development of the companies’ projects”, Ekaterina Kirilova, Head of Marketing and Segments Department with UniCredit Bulbank, added. She explained as well that the price of loans decreases faster than the price of the resource, i.e. – of the deposits. In this way practically the net interest margin of the banks decreases, therefore the credit institutions bear the burden of the crisis themselves, without transferring it to their clients.

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UniCredit Bulbank, Identity & Communications Department

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