Charlotte
20-01-06, 05:05 PM
A large portion of Bulgaria’s mortgage market is controlled by a handful of banks, a concentration not dissimilar to that on the retail segment, Bulgarian National Bank data shows.
By end-September seven banks had disbursed about 85% of all mortgage loans.
Mortgages have become the driving force behind the local banks’ growth, leaping 116% over the past year, to exceed 1.8 bln levs by end-October. Some 70% of the mortgage loans are denominated in the local currency, and the remainder in euro.
The pack is chasing DSK Bank which remains in the lead with a market share of 31% by end-September, down from 34.3% at end-June. The United Bulgarian Bank comes second with 20%, and Bulbank is ranked third with a steady 11% share. Postbank dislodges First Investment Bank from the no.4 position it held at end-June, relegating the latter into the fifth position. Next comes HVB Bank Biochim, whose merger with Bulbank will boost its share going forward, followed by Raiffeisenbank (Bulgaria) EAD.
Currently, three banks market mortgages with 0% interest in the first 12 months.
Falling interest rates have prompted some banks to come up with reschedulement schemes to keep their clients from defecting to other banks in search of softer loan terms to refinance their old debt.
Central bank statistics shows that interest rates on mortgages have dropped to an average of 7.17% versus 11% a year ago and 14-16% a couple of years ago.(Dnevnik)
http://www.imotibg.com/en/bulgarian-property-news/7-banks-control-85%25-of-bulgaria-mortgage-market-enno92784.html
By end-September seven banks had disbursed about 85% of all mortgage loans.
Mortgages have become the driving force behind the local banks’ growth, leaping 116% over the past year, to exceed 1.8 bln levs by end-October. Some 70% of the mortgage loans are denominated in the local currency, and the remainder in euro.
The pack is chasing DSK Bank which remains in the lead with a market share of 31% by end-September, down from 34.3% at end-June. The United Bulgarian Bank comes second with 20%, and Bulbank is ranked third with a steady 11% share. Postbank dislodges First Investment Bank from the no.4 position it held at end-June, relegating the latter into the fifth position. Next comes HVB Bank Biochim, whose merger with Bulbank will boost its share going forward, followed by Raiffeisenbank (Bulgaria) EAD.
Currently, three banks market mortgages with 0% interest in the first 12 months.
Falling interest rates have prompted some banks to come up with reschedulement schemes to keep their clients from defecting to other banks in search of softer loan terms to refinance their old debt.
Central bank statistics shows that interest rates on mortgages have dropped to an average of 7.17% versus 11% a year ago and 14-16% a couple of years ago.(Dnevnik)
http://www.imotibg.com/en/bulgarian-property-news/7-banks-control-85%25-of-bulgaria-mortgage-market-enno92784.html