Local currency loans drive moderate rise in bank lending in Romania

The stock of bank loans in Romania increased by 8% year-on-year to RON 264.6 billion (EUR 55.7 bln) at the end of August, according to the National Bank of Romania (BNR).

The advance was supported mainly by the loans denominated in local currency, which rose by 10.4% year-on-year, while those denominated in foreign currency increased by 3.7%.

In real terms, deflated by the consumer price index, the stock of bank loans increased by 4% at the end of August, compared to one year earlier. According to BNR, the loans denominated in local currency rose by 6.2% in real terms, while those expressed in foreign currency (mainly euro) increased by 1.8%.

The bank loans denominated in local currency amounted to RON 176.6 bln (EUR 37.4 bln) at the end of August, the largest part being retail loans extended to households - RON 104.5 bln (EUR 22.1 bln).

The local currency retail loans, nearly 40% of the total stock of bank loans, rose by 14% year-on-year, being the most dynamic market segment. They contributed 5.5% percentage points to the 8% annual increase in the total stock of bank loans.

The foreign currency loans extended to companies (also 14% up year-on-year) contributed another 2.8 pp to the 8% rise of the total loans.

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