Banks Highlights NPL - Distressed Asset

BNR: Banks should be concerned that green loans don’t become non-performing

Banks should be concerned that the loans they provide to the green economy don’t become non-performing, and a proper cost control should look not only at the turnover, but also at the project’s long-term viability, National Bank of Romania (BNR) chief economist Valentin Lazea told the “Romania – Banking & Business” conference organized by Oxygen Events.

“The banks should no longer say: ‘There is money in the green economy, we loan you because there is plenty of money. Let’s make sure the turnover is high and we are interested in the turnover alone’. No. Banks should be concerned that these loans they give the green economy don’t become non-performing, precisely because there is no adequate cost control. And how could proper cost control be done? Banks should be able, when analyzing a project, to look not only at the financial side, strictly at numbers, but also at long-term viability. That is, at how much profit it can generate during the product’s life cycle, and also to see if there are other less expensive technical solutions. So – to the same effect, but with less expensive technical solutions,” Lazea declared.

He believes that in this context, banks should…

Source: Actmedia

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