Bank lending gains momentum in Romania, driven by the corporate segment
The stock of bank loans in Romania increased 8.3% year-on-year at the end of April, reaching 293.6 billion RON (59.9 billion euros), according to the National Bank of Romania (BNR).
Bank lending gained momentum from January when the annual growth rate was only 5.1% year-on-year.
While the portfolios of the household and corporate segments increased by double-digit rates compared to April 2020, the corporate portion saw an above-average increase of 17.3% year-on-year (speaking of loans alone). in local currency) which also reverses the negative of -0.03% year-on-year. performances posted last April, at the start of the crisis.
Household lending has always been an active segment of the banking market, and the 11.0% year-on-year increase recorded in April of this year is not surprising, even after a difficult year. However, the past year has not been as hard as initially expected and the moratorium on repayments has had a positive impact in terms of loan stock.
Compared with April 2020, household credit showed slightly slower annual growth in April (+ 11% yoy vs + 12.7% yoy) which does not change the overall picture – but highlights the momentum acquired by the business segment. Government guarantees have certainly contributed to this.
In April, loans denominated in local currency represented 70% (206 billion RON). Of this amount, 60% (123.5 billion RON) was set up to purchase loans to households. The stock of foreign currency denominated loans (mainly corporate) contracted by 2.3% year-on-year to reach RON 87.1 billion at the end of April.
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