The three measures of Djankov will make a bank’s interests clearer not lower.
Linking interest rates only with SOFIBOR and YURIBOR will do interest more transparent, but is unlikely to reduce them.
The idea was launched yesterday by Deputy Prime Minister Simeon Djankov and provoked numerous comments financiers and experts.
Deputy Governor of BNB Rumen Simeonov is skeptical that the announced measures could lead to a reduction in lending rates, but acknowledges that it is more transparent.
“However, it dawned on me what is the reason banks in the country to set interest rates on loans compared to the one YURIBOR or SOFIBOR – when the Bulgarian banks are participating in this market, the risk allowance for them is much higher than for Western European banks,” he told in front at newspaper “Trud”.
Sounds a little strange intention of “separation of bank charges between the user and the bank” as Deputy Prime Minister Simeon Djankov stated. Perhaps he means putting a limit on the amount of fees implies Simeonov.
These plans sound nice, the question is how to put into practice and whether it will be too expensive and the banks and the public, said economist Georgi Ganev, according to whom “risk identification often can not fit into any formulas”.
According financier Lubomir Hristov lending rules should be changed so that the market becomes competitive: “After the 2010 unilateral changes in interest rates on loans have already raised in rank norm – (many of Bulgarian lawyers doesn’t share these views – related to increasing lawsuits against the banks). This is a definition of “reference rate” under the Consumer Credit Act in force since May 12, 2010 “reference rate” is that portion of the interest rate that can change during the loan repayment. It is the law index, which may be a market, but can be determined and “methodology” of the bank. “He told in front newspaper” Trud “.
The analysis of “active users” shows that 15 of the 18 banks using their own “methodology” recalls Christopher, adding: “The exact amount of the bank’s reference rate is decided each month by the Governing Council ie randomly. ” Which can be called exactly unilaterally raise or outside the contract.
Bankers say that these are political statements that sound good but in practice it is not clear how to obtain, summarize the “Standard”. Most requests are associated with many legislative changes, changes in regulations and ordinances. Once government have a majority in parliament, why not change the laws as they want, ask the banks. They say that for the most of the measures sought no legal impediment to apply, the problem is that the economic situation and the market are not responsive to such action.
“An encouragement of investment, consumption, employment, can do much more work than any restrictions on the banking sector and specific changes in banking laws,” commented for “Trud” Petar Andronov, CEO and Chairman of Assembly of EIBank.
Used Materials from dir.bg.