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Iulian Ernst
Senior Editor

Iulian studied physics at the University of Bucharest, and he sees himself as a physicist in the broadest sense of the word. He also studied economics at Charles University in Prague and Central European University in Budapest, after a master’s program in business administration at Bucharest Academy of Economic Studies. Since recently, he’s been exploring coding and data analysis for business and economics. As a freelancer, he worked for nearly two decades as an analyst for ISI Emerging Markets, Euromonitor International, Business New Europe, but also as a consultant for OMV Petrom and UkrAgroConsult. Iulian was part of the founding team of Ziarul Financiar. At Romania Insider, which he joined in 2018, he is reviewing the latest economic developments for the premium bulletins and newsletters. He would gladly discuss topics such as macroeconomics, emerging markets, Prague, energy sector including renewable, Led Zeppelin, financial services, as well as tech start-ups and innovative technologies. Email him at iulian@romania-insider.com. 

 

Retail lending returns gradually to robust growth in Romania

Corporate lending gained momentum thanks to the Covid support package over the past year, but as the subsidies are phased off and the economic activity returns to normal, the retail lending (consumer, mortgage) is gradually returning as the driving force behind the overall advance of the bank lending.

Thus, the corporate (local currency-denominated) loans maintain an annual growth rate of above 20% YoY (+22.1% YoY at end-August), significantly above the annual growth of the retail loans (+14.6% YoY).

Before the crisis, retail lending used to be by far the primary driver of bank lending.

Even now, as of August, the stock of retail loans (RON 132.0 bln) is 38% bigger than the stock of corporate loans (RON 88.9 bln).

But the market will sooner or later return to the pre-crisis pattern: corporate lending has advanced at comparatively slower rates in recent months - +0.8% MoM in August, compared to +1.6% MoM advance of the retail loans. This is not yet a trend since, until August, the corporate lending was still growing at stronger monthly rates.

But the retail lending is visibly gaining ground (from +9% YoY in January) and returns to annual growth rates closer to those demonstrated by the corporate lending that still benefits from Government support.

andrei@romania-insider.com

(Photo source: Kittichai Boonpong/Dreamstime.com)

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Profile picture for user iuliane
Iulian Ernst
Senior Editor

Iulian studied physics at the University of Bucharest, and he sees himself as a physicist in the broadest sense of the word. He also studied economics at Charles University in Prague and Central European University in Budapest, after a master’s program in business administration at Bucharest Academy of Economic Studies. Since recently, he’s been exploring coding and data analysis for business and economics. As a freelancer, he worked for nearly two decades as an analyst for ISI Emerging Markets, Euromonitor International, Business New Europe, but also as a consultant for OMV Petrom and UkrAgroConsult. Iulian was part of the founding team of Ziarul Financiar. At Romania Insider, which he joined in 2018, he is reviewing the latest economic developments for the premium bulletins and newsletters. He would gladly discuss topics such as macroeconomics, emerging markets, Prague, energy sector including renewable, Led Zeppelin, financial services, as well as tech start-ups and innovative technologies. Email him at iulian@romania-insider.com. 

 

Retail lending returns gradually to robust growth in Romania

Corporate lending gained momentum thanks to the Covid support package over the past year, but as the subsidies are phased off and the economic activity returns to normal, the retail lending (consumer, mortgage) is gradually returning as the driving force behind the overall advance of the bank lending.

Thus, the corporate (local currency-denominated) loans maintain an annual growth rate of above 20% YoY (+22.1% YoY at end-August), significantly above the annual growth of the retail loans (+14.6% YoY).

Before the crisis, retail lending used to be by far the primary driver of bank lending.

Even now, as of August, the stock of retail loans (RON 132.0 bln) is 38% bigger than the stock of corporate loans (RON 88.9 bln).

But the market will sooner or later return to the pre-crisis pattern: corporate lending has advanced at comparatively slower rates in recent months - +0.8% MoM in August, compared to +1.6% MoM advance of the retail loans. This is not yet a trend since, until August, the corporate lending was still growing at stronger monthly rates.

But the retail lending is visibly gaining ground (from +9% YoY in January) and returns to annual growth rates closer to those demonstrated by the corporate lending that still benefits from Government support.

andrei@romania-insider.com

(Photo source: Kittichai Boonpong/Dreamstime.com)

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