MDM Bank Chairman: No Network Development in the Urals while Market Situation Remains Unclear
6 October 2011 (15:50)
UrBC, Yekaterinburg, October 5, 2011.
‘If liabilities keep increasing in value, the cost of loans will keep rising as well. The way I feel it, banks will choose a different strategy. Rather than launching a drastic rise in interest rates, they will simply set limits on their loans. So, we are going to see a dramatic drop in the lending portfolio growth dynamics due to these limitations. There will also be a small increase in the interest rates, a very careful one, since the banks have learned from their past experience that this could lead to trouble,’ says MDM Bank’s Chairman Oleg Vyugin at a meeting with reporters in Yekaterinburg.
‘As for the outlet network development, we intend to focus on the south of the country. The Urals look stable now, but we are not planning on launching many new offices, at least while the situation remains unclear as to the markets and economy on the whole,’ he added.
‘If liabilities keep increasing in value, the cost of loans will keep rising as well. The way I feel it, banks will choose a different strategy. Rather than launching a drastic rise in interest rates, they will simply set limits on their loans. So, we are going to see a dramatic drop in the lending portfolio growth dynamics due to these limitations. There will also be a small increase in the interest rates, a very careful one, since the banks have learned from their past experience that this could lead to trouble,’ says MDM Bank’s Chairman Oleg Vyugin at a meeting with reporters in Yekaterinburg.
‘As for the outlet network development, we intend to focus on the south of the country. The Urals look stable now, but we are not planning on launching many new offices, at least while the situation remains unclear as to the markets and economy on the whole,’ he added.
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