Romanian banks extend 28% more new loans in January-August

Romanian banks granted loans totaling almost RON 114 billion (EUR 22.8 billion) in the first eight months of the year, marking a 28% increase compared to the same period in 2023, according to data published by the National Bank of Romania (BNR).

More than half of this amount was directed to individuals. However, the figure includes the refinanced loans.

During this period, companies received nearly RON 50 billion (EUR 10 billion) in loans, representing around 44% of the total, with the remainder being loans to the population, Economedia.ro reported.

A breakdown by currency reveals that around 83% of these loans were issued in local currency, 16% in euros, and a small portion in US dollars, reflecting confidence in the national currency and helping to mitigate currency risk.

As of now, the balance of non-governmental credit, calculated as the difference between new loans and repayments, has reached RON 408 billion (over EUR 80 billion), showing an increase of almost 15% compared to the same period last year.

Experts note Romania's banking system is in a solid financial position, with all key indicators exceeding EU banking sector averages. Romanian banks are well-capitalized, with the solvency ratio reaching over 24% in June, which is three times the required minimum. Additionally, the liquidity coverage ratio was over 286% in March, surpassing the European average of 167%.

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