In accordance with the decision of VTB Management Board, the Bank’s branches were granted the right to take independent credit decisions in relation to loans for replenishing working capital that are secured by real estate collateral and with tranche period of under 2 years (during the crisis, the tranche period was limited to 1 year). For the customers with good financial standing, the limit was increased by 50-100% (up to RUB 600 million per borrower). Besides, due to lower industry risks, branches gained the right to lend to a wider range of production industries.
Under the new medium-sized business development strategy, the Bank extended the list of branches delegated with the authority to provide loans for financing capital expenditures with the repayment period of up to three years. Currently, VTB branches in 40 operating cities have this authority.
According to Andrey Kiselev, Senior Vice President and Head of Corporate Segment 3, “the aim of such initiatives is to support and encourage development of real sector companies in VTB operating regions. Local branches can now take credit decisions faster. On the one hand, larger powers correlate with customer needs, and on the other hand, they will encourage meeting the Bank’s business targets for 2010.”