THE "EUROPEAN BANKING UNION AND THE NEW BANKING MODEL" CONFERENCE / NICOLAE DĂNILĂ, NBR: "Regaining trust, the main challenge for banks"

The major challenge for lenders, both locally and on a European level, is rebuilding the trust in the system, not only that of customers, but that of the state, of ratings firms, and of their employees, says Nicolae Dănilă, member on the Board of Directors of the National Bank of Romania (NBR). The client must be at the heart of the banks' new business model, he says.

"We need to make the transition from «transaction banking» to «relationship banking», to solutions tailored to the customers' needs", Nicolae Dănilă said.

Customers have more complex and sophisticated needs, and products and services provided by the banks must take that reality into account, the NBR official says.

"It is essential for banks to have a proactive reaction, so they can get involved in the new process of economic growth that we want".

The message that he wanted to send to the banking system in Romania is that it is strongly "tied" to the local economy, to the Romanian customers for many years from now on.

"It is fair to mention that the local market, the customers from the Romanian market, that generate resources, businesses and profitability have natural and normal expectations from banks - namely moving to the reality where bankers contribute to the growth of the economy and the improvement of the living standard, showing greater responsibility to the local market, to the local customers and stakeholders. This more than normal approach represents the contribution and the base of the sustainability of a banking business model and the reason a bank exists", the official of the Central Bank said.

Romania's economy is heavily dependent on bank lending. The development of alternative financing solutions is in full progress, but no obvious result is visible so far, and under these circumstances, identifying and attracting the sources of financing becomes a priority, says Nicolae Dănilă.

"Domestic saving must be supported on a national and banking level", he said.

The need to draw capital from abroad continues to manifest itself, in the process of achieving real convergence and increased competitiveness, the NBR official also said.