“The main drivers of the decline were the rising property prices and uncertainty reigning the marketplace. In the coming months, the demand will sink even more, mortgage lending being expected to bounce back in a healthier condition”, said Major.

Citing a recent UniCredit research, he added that over 25% of the surveyed said they intend on applying for a loan in the coming 10 years, while a mere percentage of 75 of the respondents said they would afford a mortgage loan.

“We calculated the affordability index (index that gauges the affordability of a family to buy a home) which dropped from 3.8 to 6.5 in 2007. The wages dropped recently by an average of 5-6% and further decline is in sight”, Major added.

UniCredit Tiriac Bank has already proceeded with the restructuring of credits in the situations of delinquency by applying forbearance schemes or by swapping the currency in which the clients borrowed.

“The financing costs will scale back to 1-2 years ago levels, but will steady in the coming period,” Major stated.

As for the retail chains in the banking system, Major said he expected a reshuffle of the units, rather than shutdowns.