Estonia’s biggest lenders aren’t dependent on financing from their Swedish parent companies after an increase in deposits and contraction in borrowing, Aeripaeev cited Priit Perens, the head of the local unit of Swedbank AB (SWEDA), as saying in an interview.
The loan-to-deposit ratio of Estonian banks, which also include the subsidiaries of SEB AB and Nordea Bank AB (NDA), has declined to 123 percent from about 190 percent in 2007, the Tallinn-based newspaper cited Perens as saying. Estonian banks are financing their lending operations independently, when factoring in their equity capital, it said.
Most of Estonian banks have abandoned collateral-based financing, meaning clients are mainly assessed based on their potential cashflow or income, instead of the value of their collateral, Aeripaeev said.
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