Volksbank Romania intentionally granted bad loans for market share

The local bank Volksbank Romania predicted that it will achieve negative margins by granting loans in Swiss Franc in 2007-2008 and assumed this loss in order to gain market share, according to a report commissioned by the bank to the consulting company PricewaterhouseCoopers (PwC), cited by local Economica.net. The existence of the risk commission, disputed by the bank clients in court, was not only justified, but it was charged at a much lower value than necessary to ensure the bank's profitability, concluded PwC. Volksbank Romania commissioned PwC for a report about whether the interest and fees charged to the customers, including the risk commission, were legal and had economic justification. Volksbank Romania was taken over by the local bank Banca Transilvania at the beginning of December. editor@romania-insider.com