Romania’s stock of bank loans keeps shrinking, down 2.6% y/y at end-Aug

By bne IntelliNews September 25, 2013

The stock of bank loans to the non-government sector in Romania edged up marginally on the month by 0.2% to RON 221.9bn [EUR 50bn] at the end of August - yet lagging by 2.6% on the year, the central bank announced. The monthly advance in August was a result of the short-term exchange rate volatility but on a broader perspective the local currency has remained rather stable nominally and the annual contraction of non-government loans is pretty comparable when expressed in either local currency [2.6% y/y] or foreign currency [2.1% y/y].

The stock of non-government loans has contracted by EUR 1bn [2% ytd] in Jan-August this year after already narrowing by EUR 0.6bn in 2012. The downward pattern seen over the past two years follows another two-year credit expansion period in 2010-2011. Overall, the stock of non-government loans remains below the EUR 52.7bn peak reached at the end of October 2008, before the credit crunch.

Mortgage lending to households has increased significantly by 11.2% y/y to EUR 9bn at the end of August and accounts for 17.2% of the total bank loans [17.9% of non-government loans]. Mortgage lending, supported by the government guarantees programme, has partly offset the major 10% y/y decline in the stock of consumer loans that reached EUR 12.2bn at the end of August. Mortgage loans more than doubled from the EUR 5.2bn at end-Oct 2008. Consumer loans were nearly EUR 20bn before the credit crunch at end-Oct 2008. But even more concerning is the 2.5% y/y contraction in corporate lending. The interest rate cuts over the past months have pushed up the stock of local currency corporate loans by 2.4% y/y – but this slim improvement was insufficient to maintain the overall stock of loans to non-financial corporations on a positive annual trend.

LOANS EUR bn Household Household:  Household:  Corporations:  Non-govt Govt TOTAL
[eop] total consumer mortgage non-financial      
Dec-08 24.89 18.49 5.24 23.72 49.7 1.57 51.27
Dec-09 23.7 17.22 5.73 22.75 47.27 2.67 49.95
Dec-10 23.83 14.99 6.76 24.42 48.85 2.62 51.47
Dec-11 24.14 14.35 7.73 26.71 51.63 2.24 53.87
Dec-12 23.59 13.1 8.37 26.81 51 2.23 53.24
Aug-13 23.27 12.22 8.97 26.12 50.01 2.18 52.2
% of total 44.6% 23.4% 17.2% 50.0% 95.8% 4.2% 100.0%
y/y -1.8% -10.0% 11.2% -2.5% -2.1% 0.5% -2.0%
Source: BNR

 

Related Articles

Owner of Romania’s Dedeman reportedly close to signing largest ever deal in the Romanian office segment

Dragos Paval, owner of Romania’s biggest DIY retailer Dedeman, is reportedly close to signing an agreement with Africa Israel Investments for the acquisition of an office building project in ... more

RBI doubles net profit y/y in Q1 as Russian business recovers

Raiffeisen Bank International (RBI), the second largest bank operating across Central and Eastern Europe by assets, reported that net profit almost doubled year-on-year to €220mn in the first ... more

Shares of Digi Communications drop as CEO of Romanian subsidiary is investigated for corruption

Shares in Digi Communications closed the day 4.1% down at RON39.5 (€0.86) per share on the Bucharest Stock Exchange on May 17, the day after they were floated. The company was hit by a ... more

Register here to continue reading this article and 2 more for free or purchase 12 months full website access including the bne Magazine for just $119/year.

Already a subscriber or registered - click here to recover access.

If you a IntelliNews Pro user - click here to login.

Thank you. Please complete your registration by confirming your email address.
A confirmation email has been sent to the email address you provided.

To continue viewing our content you need to complete the registration process.

Please look for an email that was sent to with the subject line "Confirmation bne IntelliNews access". This email will have instructions on how to complete registration process. Please check in your "Junk" folder in case this communication was misdirected in your email system.

Already a subscriber or registered - click here to recover access.

If you a IntelliNews Pro user - click here to login.

If you have any questions please contact us at sales@intellinews.com

Subscribe to bne IntelliNews website and magazine

Subscribe to bne IntelliNews website and monthly magazine, the leading source of business, economic and financial news and commentary in emerging markets.

Your subscription includes:
  • Full access to the bne content daily news and features on the website
  • Newsletters direct to your mailbox
  • Print and digital subscription to the monthly bne magazine
  • Digital subscription to the weekly bne newspaper

Already a subscriber or registered - click here to recover access.

If you a IntelliNews Pro user - click here to login.

bne IntelliNews
$119 per year

All prices are in US dollars net of applicable taxes.

If you have any questions please contact us at sales@intellinews.com

Register for free to read bne IntelliNews Magazine. You'll receive a free digital subscription.

Already a subscriber or registered - click here to recover access.

If you a IntelliNews Pro user - click here to login.

Thank you. Please complete your registration by confirming your email address.
A confirmation email has been sent to the email address you provided.

IntelliNews Pro offers daily news updates delivered to your inbox and in-depth data reports.
Get the emerging markets newswire that financial professionals trust.

"No day starts for my team without IntelliNews Pro" — UBS

Thank-you for requesting an IntelliNews Pro trial. Our team will be in contact with you shortly.

Dismiss