Annual lending growth slows to 6.4% in Romania in May, savings increase

Lending to households and companies increased by 6.4% year on year (y/y) to RON 239.1 billion (EUR 51.5 billion) in May, moderating from 6.8% y/y in April, according to Romania’s National Bank (BNR) data. The RON-denominated loans to households jumped by 22.8% y/y to RON 87.2 billion, while those to companies rose by 8.5% y/y to RON 67.5 billion in the period. Meanwhile, foreign currency (FX) loans to population dropped by 10.6% y/y to RON 39.8 billion and to companies by 5.2% y/y to RON 44.6 billion in May. On the savings side, private sector resident deposits increased by 10.6% y/y to RON 308.7 billion, mostly fueled by some stronger rises of savings in foreign currency. Thus, the FX deposits rose by 13.5% y/y to RON 100.9 billion in May (15.8% y/y growth in the household segment and 13.8% in the corporate segment). Interest rates are on the rise in Romania, dampening credit demand and encouraging savings. The BNR already hiked its policy rate three times this year, while inter-bank market rates have been speeding up since last autumn. editor@romania-insider.com