Retail lending keeps growing in Romania, but not as fast as state borrowing

The stock of local currency loans extended by Romanian banks to households rose by RON 864 million (EUR 170 million) in February, marking a 9.9% y/y annual advance that exceeded the consumer price inflation slightly, according to data published by the National Bank of Romania (BNR).

The annual growth rate eased from 10.2% y/y in January, and the 0.5% m/m monthly increase indicates certain moderation from +0.7% m/m in February 2025 – but the overall figures still indicate solid credit origination in the retail market. Indeed, the foreign currency-denominated segment of the retail market is losing ground as the stock of real loans denominated in other than local currency decreased by 12.8% y/y at the end of February.

Overall, the loans to households increased by 7.9% y/y to RON 206 billion at the end of February, out of which RON 191 billion was expressed in local currency (+9.9% y/y) and RON 15 billion (-12.8% y/y) was denominated in foreign currency.

Corporate lending gained momentum to +5.9% y/y at the end of February (+5.4% y/y in January), when the stock of loans to non-financial companies reached RON 243 billion. But the annual growth lags behind inflation, indicating financial disintermediation.

Government financing remained the most dynamic segment of the credit generation in Romania, with 11.3% y/y annual increase. The stock of bank loans to the government sector reached RON 275 billion – exceeding the stock of corporate loans in Romanian banks’ portfolios.

(Photo source: Ruletkka/Dreamstime.com)