Stock of Romanian bank deposits up 3.1% y/y to EUR 45.3bn at end-June

By bne IntelliNews July 23, 2013

The stock of deposits in Romanian banks increased by 3.1% y/y to EUR 45.3bn [RON 202.2bn] at the end of June, the central bank said.

The advance was driven by the 6.1% y/y expansion of household deposits – which accounted for 62.3% of total bank deposits to the non-government sector at end-June.

The stock of bank deposits has constantly increased since early 2009 – after an exchange rate correction incurred by the local currency gave a haircut in their value expressed in euro. The local currency’s strengthening meanwhile [vis-à-vis the euro] helped the deposits’ expansion meanwhile.

The loan-to-deposit ratio for the total banking system* edged down to 111% at the end of June from 114% at the end of 2012 and 119% at mid-2012. The ratio neared the 110% target level considered by foreign financial groups.

The households’ net balance with banks** improved by EUR 1.8bn to a positive value of EUR 4.9bn [3.7% of GDP] as of June compared to a year earlier. The households' net balance improved by EUR 6.4bn over the past four years ending June 2013 – meaning roughly during the recession period. Since October 2008, when the credit crunch started, the households’ net balance has improved by EUR 9.6bn [7.3% of last year’s GDP] from a negative value of minus 4.7bn. Out of the EUR 9.6bn made available to banks, only a small part was transferred to non-financial companies that increased their net borrowing position vis-a-vis banks by only EUR 2.3bn to a negative value of minus EUR 12.7bn.

* Calculated for the loans to and deposits of the non-government sector alone; the ratio for the government sector included was 98% at the end of June.

** deposits minus loans

Related Articles

UAE investor to develop $500mn agri-food group in Romania

The Al Dahra Group of the United Arab Emirates (UAE) wants to purchase nearly 60,000 hectares of agricultural land along the Danube River, develop a logistics company including water and road ... more

Romanian president rejects justice minister’s request to dismiss head of anti-corruption body

Romanian President Klaus Iohannis said on April 16 he is rejecting a request from the justice minister to dismiss the head of the National Anticorruption Directorate (DNA), Laura Codruta Kovesi. ... more

ArcelorMittal proposes to divest assets in Czech Republic, Macedonia and Romania

International steel and mining company ArcelorMittal said on April 13 it has proposed a divestment package to the European Commission in a bid to obtain approval for its planned acquisition of ... more

Dismiss