Private banking market follows upward trend

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Higher interest rates given by Romanian banks in the past period succeeded to attract the most elitist client category, Capital weekly reports.
Concretely, rich Romanians and foreigners withdrew part of their placements on the markets hit by financial turmoil in an attempt to dissipate the risk, attracted by the opportunity to earn higher gains based on reduced and medium risk investments.
For such VIP clients, the banks are offering special conditions, with higher interest rates for lei (national currency) deposits which can be negotiated up to 18-20 percent, said the quoted source.
Since 2008-end still, a trend was noted, the clients directing their liquidities to the banks, to term deposits or very reduced risk investments, said Marijana Vasilescu, head of Royal Preferred Banking with RBS Romania. This is due to the abrupt fluctuation of the foreign currency exchange, as well as to a higher volatility on the real estate market.
„The advantage presented by term deposits are the raised liquidity degree in the current economic context, as well their safety and diversity depending on each client’s appetite or risk profile”, underlined Vasilescu.
Given such arguments, the Romanian private banking market rose spectacularly in 2008, Capital reads.
The field of individual clients’ wealth administration has become increasingly attractive for the banks in the past two years, and statistical data show that this market niche had in 2007 a potential of 1.8 billion euros, explained Daniela Suteu, head of Private Banking Credit Europe.
According to her, the assets managed by private banking services jumped 40 percent in 2008, to more than 3.1 billion euros.
Prospects for this year are of conservation, clients showing a much more conservative approach. Yet the figures on the first four months of the year further indicate a slight increase on the private banking segment.
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