CORPORATE: INTERVIEW
Seeing Signs Of Recovery MARINOS VATHIS President of Vojvodjanska Banka
We are seeing a renewed interest in large and (more importantly) small companies, and that tells us that the economy is getting back on the right track. But the situation remains complex, and banks must navigate these waters with great care
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hanks to our professional team that understands and thoroughly analyses the operations of the bank's clients, Vojvodjanska Banka has seen a rise in lending activities and has been the recipient of awards in the area of commercial payments and financial transfers, says Marinos Vathis, President of Vojvodjanska Banka.
► How much do the somewhat improved macroeconomic trends reflect on the activities of the banking sector, and what prerequisites must to be met in order for the corporate loan sector to grow? – Macroeconomic and political stability are prerequisites for a market-oriented economy, and we have both in Serbia. We are witnessing an increase in domestic corporate loans on the market and, at the same time, a decrease in the level of NPLs [non-performing loans]. I can tell you in more detail by the example of Vojvodjanska Banka. After several years, we are getting requests from our large corporate clients for project financing, including the financing of a shopping mall and a large hotel in Belgrade. Our SME clients, on the other hand, are asking for more long-term investment loans and revolving loans. We are very satisfied with our results in the small business segment as well. We have achieved a 90% increase in loans disbursed to small business clients in the past year. This is all very important as it signals that economy is on the right track.
► What are the biggest challenges in the banking sector, and how does Vojvođanska Bank respond to them? – In my opinion, the main challenges are low growth, non-performing loans and low interest rates. Due to the high level of NPLs on the market, all banks have become more cautious in approving lending facilities, which slowed down the level rate of lending expansion. This led to excess liquidity, which, as a further as a consequence, has low interest rates. I can tell you that Vojvodjanska Banka has a strict risk policy and a strong team that analyses and understands the operations of our diverse clients so as to avoid problems or not to overload a client because of any foreseen difficulty to repay the loan.
The Commerzbank award is a confirmation of our commitment always to provide high-quality services for our clients. For them, it is important to know that they have a first-class bank, especially in the execution of payment transactions, as a partner ► The leading international banking and financial institution, Commerzbank, has yet again declared Vojvođanska Bank as the best bank in the area of commercial payments and financial transfers. How does this benefit your clients in practice? – Commerzbank awarded us for the fourth consecutive year for the exceptional quali-
ty, high standards and extreme efficiency in our delivery of commercial payments and financial transfers. This STP award represents a confirmation of our commitment always to provide high quality services to our clients. And our clients know it best. For them, it is important to have a top-notch bank in the execution of payment transactions as a partner.
► What benefits will students get from the cooperation between Vojvođanska Bank and the University of Novi Sad and the University of Belgrade’s faculties of economics? – We have signed protocols on cooperation with the Faculty of Economics of Belgrade University and Novi Sad University for now, and we are planning to sign with other universities as well. These protocols call for internships for students with the possibility of employment, scholarships, mentoring programs, sponsorships and support to faculties’ programs, professional lectures of experts from Vojvodjanska Banka, students participation in case studies, organisation of workshops, and many other activities. We want to be an active partner to our academic community and to help students understand both economic and financial processes while getting hands-on banking experience. I think that internships during studies are very important as practical experience and can shape a professional career choice. This is a perfect example how business can work together with education and science. ■
42 FOREIGN INVESTORS COUNCIL IN SERBIA THE VIEW ON 2016/17