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Andrei Chirileasa
Editor-in-Chief

Andrei studied finance at the Bucharest Academy of Economic Studies and started his journalism career in 2004 with Ziarul Financiar, the leading financial newspaper in Romania, where he worked for ten years, the last six of which as editor of the capital markets section. He joined the Romania-Insider.com team in 2014 as editor and became Editor-in-Chief in 2016. He currently oversees the daily content published on Romania-Insider.com and likes to stay up to date with everything relevant in business, politics, and life in Romania. Andrei lives with his family in the countryside in Northern Romania, where he built their own house. In his free time, he studies horticulture and tends to his family’s garden. He enjoys foraging in the woods and long walks on the hills and valleys around his village. Email him for story ideas and interviews at [email protected] 

 

Bank lending in RO keeps supporting consumption more than companies

The stock of bank loans to the private sector accelerated marginally in August to a 3.7% annual growth rate, from 3.6% in July. In absolute terms, it hit RON 274.4 billion (EUR 56.6 bln).

In real terms, discounted for the consumer price inflation, the banks' private loan portfolio advanced by 1% on the year.

The stock of private bank loans rose by 0.9% in the month, again only marginally faster than the 0.8% advance in July.

The fragile growth was deeply unbalanced between households and firms: while the stock of loans to households rose by 10.5% year-on-year to RON 115 bln, the loans to firms edged up by a mere 0.8% to RON 72.6 bln.

The corporate loans have not even kept pace with inflation, as of July, while the households kept borrowing with a significant impact on private consumption.

According to Romania's National Bank (BNR) data, the stock of loans advanced by 7.1% year-on-year as of the end of March, but the annual growth slowed afterwards to 5.7% in April, 4.5% in May, and 4.1% in June.

Bank debtors in trouble because of the pandemic's effects can still defer their repayments by the end of the year, which has had a net positive impact on the stock of loans.

From January 2021, when the deferred installments should be paid together with the normal installments, an opposite effect may take place, depressing the banks' loan portfolios.

(Photo: Shutterstock)

[email protected]

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Profile picture for user andreich
Andrei Chirileasa
Editor-in-Chief

Andrei studied finance at the Bucharest Academy of Economic Studies and started his journalism career in 2004 with Ziarul Financiar, the leading financial newspaper in Romania, where he worked for ten years, the last six of which as editor of the capital markets section. He joined the Romania-Insider.com team in 2014 as editor and became Editor-in-Chief in 2016. He currently oversees the daily content published on Romania-Insider.com and likes to stay up to date with everything relevant in business, politics, and life in Romania. Andrei lives with his family in the countryside in Northern Romania, where he built their own house. In his free time, he studies horticulture and tends to his family’s garden. He enjoys foraging in the woods and long walks on the hills and valleys around his village. Email him for story ideas and interviews at [email protected] 

 

Bank lending in RO keeps supporting consumption more than companies

The stock of bank loans to the private sector accelerated marginally in August to a 3.7% annual growth rate, from 3.6% in July. In absolute terms, it hit RON 274.4 billion (EUR 56.6 bln).

In real terms, discounted for the consumer price inflation, the banks' private loan portfolio advanced by 1% on the year.

The stock of private bank loans rose by 0.9% in the month, again only marginally faster than the 0.8% advance in July.

The fragile growth was deeply unbalanced between households and firms: while the stock of loans to households rose by 10.5% year-on-year to RON 115 bln, the loans to firms edged up by a mere 0.8% to RON 72.6 bln.

The corporate loans have not even kept pace with inflation, as of July, while the households kept borrowing with a significant impact on private consumption.

According to Romania's National Bank (BNR) data, the stock of loans advanced by 7.1% year-on-year as of the end of March, but the annual growth slowed afterwards to 5.7% in April, 4.5% in May, and 4.1% in June.

Bank debtors in trouble because of the pandemic's effects can still defer their repayments by the end of the year, which has had a net positive impact on the stock of loans.

From January 2021, when the deferred installments should be paid together with the normal installments, an opposite effect may take place, depressing the banks' loan portfolios.

(Photo: Shutterstock)

[email protected]

Normal
 

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