Romania’s banking system is the smallest in Central and Eastern Europe compared to the economy’s size, but will have the fastest growth rate in the region due to the economic recovery, with an average annual advance of almost 10%, according to a report by Raiffeisen group.

Raiffeisen estimates an accelerated credit growth over the next five years.

The stock of loans had a share of 29% of the GDP in Romania at the end of last year, the lowest of all the markets in the region. The ratio of bank assets to gross domestic product fell from 65% in 2008 to 56% in 2016, leaving Romania on the last place in the region in terms of financial intermediation.

The credit volume will grow by 9.5% annually until 2022, after a yearly growth rate of 40% in the period 2000-2010 and 2% in 2011-2016, according Raiffeisen. The stock of credits will rise by EUR 36 billion in the next five years, from the current level of EUR 49 billion.

The average growth rate in Central and Eastern Europe (CEE) is estimated at 6.8% for local currency loans and 4.1% for those in euro.

editor@romania-insider.com