Non-residents’ deposits in Romania continue to drop

The long-term deposits constituted by foreigners in local banks dropped in October below the EUR 4 billion threshold, down EUR 1.2 billion compared to the same month last year and half compared to the maximum of 2011. Compared to the end of last year, foreign deposits dropped by about EUR 890 million, reports local Ziarul Financiar. These deposits are mainly financing lines that foreign groups grant to their local subsidiaries to support their local operations. Non-residents' deposits saw a lower level only in 2008, when they amounted to EUR 3.5 billion, as the financial crisis began to hit. The downward trend in the funding provided by foreign banks on the local market could continue in the next period. The deleveraging process by parent banks has been tidy, which helped to mitigate significant vulnerabilities related to banking operations’ currency mismatch, according to Romania’s National Bank (BNR). editor@romania-insider.com