The stock of non-government bank deposits in Romania increased by 6.8% y/y to EUR 45.5bn [RON 200.4mn] at the end of July, accelerating from the 5.6% y/y growth recorded a month earlier, the central bank reported.
However, compared to the previous months, the stock of deposits slightly declined from EUR 46.4bn at the end of April. It is the steepest decline in the stock of deposits in the past couple of years – but the 2% contraction in deposits over the three months is partly explained by the 2% weakening of the local currency vs. the euro.
When expressed in local currency terms, the stock of deposits increased by only 2.9% y/y, decelerating from an annual growth rate of 5.8% y/y at the end of June.
The customers’ net balance with banks [deposit minus loans] has improved by EUR 3.3bn over the past year to minus EUR 4.77bn. Since the end of 2008, the improvement was EUR 6.9bn – meaning that the pace of improvement* has rather accelerated recently.
The households’ net balance has improved significantly by EUR 9.1bn since end-2008 and by EUR 2.1bn in the past year – as a result of the deposits building up, driven by uncertain future revenues and lower bank loans. Currently, households hold a positive balance of EUR 5.03bn.
Since the end of 2008, the companies’ balance has deteriorated [meaning more loans were contracted over deposits] by EUR 3.6bn – but the trend reversed in the past year when the companies have built up more deposits than they borrowed. Currently, companies hold a EUR 12.39bn negative balance with banks.
* which is proportional to the pace of disintermediation
The Romanian authorities have approved the transaction through which China Energy Company (CEFC) is taking over 51% of KazMunayGas International (KMGI), the majority shareholder in Romania’s ... more
Romania’s National Anticorruption Directorate (DNA) has indicted Romanian telecom operator RCS&RDS for bribery and money laundering and seized two of its assets worth around €3mn, RCS&RDS ... more
Bucharest listed Digi Communications announced on July 21 that its Hungarian subsidiary, Digi Tavkozlesi es Szolgaltato, has signed an agreement to acquire Hungarian broadband and telephone provider ... more