Non-performing loans accounted for as much as 5.28% of the overall loans granted by banks in September, the highest level recorded since March 2003, according to data from the NBR (National Bank of Romania), Ziarul Financiar reported.

The share of these loans rose abruptly from the spring of 2007, when it accounted for just 3%. At the BCR, the largest bank on the market, the share of non-performing loans was of 3.4% in September.

Dominic Bruynseels, chief executive, says this is a "comfortable" level, but adds a slight deterioration is to be expected due to the rise in unemployment.

However, analysts note the large share of loans rated as being "under the management's scrutiny", which account for 26.6% of the portfolio, while another 8.9% are "below standard" loans. "This is just a classification based on the NBR's instructions, which separates loans in terms of the number of days they are overdue, it is not a matter of concern.

Having been at the helm of the BCR for just six months, my impression is that clients tend to take on credits "more liberally" than in other countries, so we have to work on inducing an adjustment in this behaviour," commented Bruynseels.