The CEO of Banca Transilvania, Omer Tetik, stated that they have already stopped the renovation of more than 200 branches, reduced training programs and postponed the second phase of the digitalization program.

According to the media, Romanian banks are preparing to cut spending as a result of the new asset tax. Because of that, the CEO of Banca Transilvania, Omer Tetik, stated that they have already stopped the renovation of more than 200 branches, reduced training programs and postponed the second phase of the digitalization program.

 At the moment, Banca Transilvania does not see raising interest rates as an option, as SMEs would not be able to absorb an aggressive rise in interest rates.

The CEO further states that it is not the customers fault that the tax has been introduced, but as a result of if, fewer SMEs might receive funds from Banca Transilvania.

Will the spending cuts be enough to absorb the impact of the new tax alone is yet to be seen.