The Czech bank CSOB is searching for ways to adapt its lending practices in order to be able to continue doing business with its best customers while conforming to the stricter Basel III regulations at the same time. Its Real Estate Finance Director Lenka Kostrounova says that one way to do that could be to release some of the exposure it has in some projects by offering it to other parties, like insurance companies or pension funds. “We should find a partner who is willing to participate in the financing, but at the same time, we should keep control over the existing exposure.”
Another option would be to use the model of financing that’s more prevalent in the United States. “The American market is mostly financed via bonds compared to Europe which is financed by loans,” says Kostrounova. “In my opinion there is space to increase this bond issue financings.”
