Sberbank could lower loan rates in May - senior VP
YEKATERINBURG. April 25 (Interfax) - Sberbank Russia may lower its loan interest rates in May 2013, Sberbank Senior Vice President Alexander Bazarov said at a briefing in Yekaterinburg Thursday.
"Actually we already started correcting them in February, when they saw their first reduction, without awaiting any major meetings [interest rates were discussed at a meeting with Russian President Vladimir Putin on April 22]. The trend continues and we are very glad that the country's authorities are finally dealing with this problem because discussions have gone on for a long time at different levels with different leaders about what needs to be done and Sberbank should not be the only bank to go against the trend and lower interest rates while all the other banks - don't. (. . .) This [the lowering of interest rates] will probably happen in May, the question is when in May," he said. Bazarov did not name the parameters for lowering interest rates.
Earlier in April Sberbank Deputy Chairman Andrei Donsky said Sberbank may reduce rates for corporate clients in May.
"We lowered rates for corporate clients in March. We are seeing better trends in April in terms of more applications for loans. We cannot judge how long-term this trend is. So for now we can say we have no plans to increase interest rates. But the decision on whether to leave them or lower them will not be taken before the middle to the end of May," he said.
Bazarov said Thursday, April 25, that in the long-term lowering the margin for banks could lead to reduced lending.
"I am not commenting on the margin issue now, because narrowing the margin for banks in the long-term will lead to reduced revenue and reduced revenue will lead to reduced capital and reduced capital means reduced opportunities for lending in the economy. And we understand that the main aim is to speed up economic growth not slow it down," he said.
Bazarov also said Central Bank of Russia rates are rather high amid the current level of inflation and slower economic growth.
"We reckon that with the level of inflation that Russia has now, the current economic development trends in Russia and slower economic growth, they pose more of a threat than inflation. But, I repeat, this is an issue for the regulators and not the bankers or businessmen. This is my personal opinion and not Sberbank's official position," he said.
Market trends indicate that Central Bank rates should come down, he said. "This is clear and that is why I think that the right initiative will probably elicit a positive reaction from banks," he said.
