Romanian banks can lend from domestic savings as loans-to-deposits ratio drops below 100 pts

Banks operating in Romania have the capacity to fund lending based on domestic savings, considering that the loans-to-deposits ratio dropped below 100 points to 87 points in March 2016, the Romanian Association of Banks (ARB) president Sergiu Oprescu said during an event.

He added that the degree of financial inclusion must increase, as it is still very low compared to the European Union’s average, “even if we had the highest growth, from 44 to 61 percent between 2011 and 2014. Still, a 61 percent indicator shows we are far behind. The EU average is at 90 percent,” he commented.

According to Oprescu, in order to improve this level, financial education needs to grow. For this purpose, ARB has launched in January 2016 the Financial Education Platform.

Natalia Martian

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