Money keeps piling up in Romanian banks, despite record low interest rates. Bank deposits reached new highs last year while loans continued to decline.

The total value of loans granted by Romanian banks went down by 3.1% last year, to EUR 47.2 billion. In nominal terms, banks lost about EUR 1.55 billion of their loan books. Some of the largest local banks sold large piles of non-performing loans (NPLs) to clean up their balance sheets. New credits granted to companies and individuals could compensate for the sales.

Bank deposits increased by 7.5%, to EUR 51.7 billion. Companies and individuals placed some EUR 3.64 billion in new bank deposits, despite lower interest rates. This shows that they can’t find better placements or that they are unwilling to take more risks.

The loans to deposits ratio thus fell to 91%.

The total loans in local currency increased by 8.5% last year, to EUR 20.6 billion. The total loans in foreign exchange went down by 10.6%, to EUR 26.6 billion.

editor@romania-insider.com