The local banks have attracted more savings into accounts from Romanian households and companies in April despite much higher spending on Easter holiday, while loans granted to customers rose at lower pace.
Compared to March, the bank loans granted to individuals and corporate clients in Romania increased by 0.6 percent in April, to RON 256.5 billion (EUR 54 billion), central bank data show.
Companies seems to be more interested than households in taking loans.
Bank loans in RON granted to individuals rose by 1 percent month-on-month and by 15.3 percent year-on-year in April, up to a fresh all-time high of RON 98.65 billion (EUR 20.8 billion) despite higher interest rates.
But companies increased their RON borrowings in April by 011 percent month-on-month to RON 70.7 billion.
During the last year (April 2018- April 2019), forex-denominated loans rose by 1.6 percent to RON 87.15 billion-forex equivalent but declined if calculated in EUR due to the steep depreciation of the Romanian currency this year – by close to 2 percent.
The amount of deposits increased by 2 percent month-on-month and by 9.9 percent year-on-year in April, to RON 337.4 billion (EUR 71 billion).
During the last couple of years, Romania’s bank clients increased their creditor status against banks due to strong savings and weak credit market, deposit holders being technically the banks’ creditors.
In April, bank deposits exceeded loans by 31.5 percent.
Almost 4 out of 10 Romanians (39 percent) have no savings and are forced to cut spending or borrow money from friends or family, an ING international study recently showed.
In Europe, more than one in four (27 percent) people say their household has no funds put aside. The shares are similar in Australia and the USA.