Romania’s bank loan balance increased by 8.4% year-on-year to 413 billion Ron (approximately 82.6 billion euros) as of the end of September, increasing from +7.7% year-on-year in August and +6.8% year-on-year as of February 2019. increased. According to data published by the Romanian National Bank, at the end of July.
Deposit accumulation is further accelerating, with the balance of bank deposits increasing by 8.6% year-on-year to 595 billion runes (120 billion euros) at the end of September, resulting in an increase in the loan-to-deposit ratio.
Unsurprisingly, outstanding non-resident loans soared by 24% year-on-year to RON156 billion (more than EUR 31 billion). Although most of the loans are to parent financial groups, Romania’s non-governmental sector (households and businesses) still accounts for more than a quarter of the money held in banks.
Regarding personal (household) lending, consumer lending (+15.9% year-on-year) is clearly more active than housing loan lending (+2.9% year-on-year).
On the corporate lending front, short maturities (up to one year) are preferred, with the volume of local currency loans with such maturities increasing by 43% year-on-year. In contrast, outstanding local currency bank loans with maturities of more than five years fell by 2.8% year-on-year.
In general, foreign currency-denominated loans have lost their appeal, with outstandings rising only 2.6% year-on-year, although they still account for nearly a third of the total. Companies have long entered into such financing, and some have not completely abandoned such financing alternatives.
iulian@romania-insider.com
(Photo source: Inquam Photos/Octav Ganea)
