The stock of bank loans to Romanian non-financial companies increased by 19.4% year-on-year, or RON 23.9 billion (EUR 4.6 billion), in the last 12 months to November, according to data from the National Bank of Romania (BNR). In absolute terms, it reached RON 147.3 billion (EUR 29.8 billion) at the end of November.
Loans denominated in local currency increased by more than a quarter (+25.2% year-on-year) and represent 62% – almost two-thirds – of the total corporate loan portfolio.
On the other hand, loans to individuals (to households) lost momentum to 9.5% YoY at the end of November, despite significant support from mortgage loans (+13.1% YoY) which offset the sluggishness in mortgage loans. consumption (+5.5% YoY). Overall, outstanding loans to households reached RON 163.9 billion (EUR 33.1 billion).
Adding up all non-governmental loans, banks’ loan portfolio increased by 14.6% year-on-year to almost RON 322 billion (EUR 65.0 billion), or 27.7% of GDP according to BNR calculations. Financial intermediation only increased by 0.4pp from 26.7% at the end of 2020. The ratio is still around 10pp below the record high of 37.7% reached in 2009, as Nominal GDP has grown over the past decade thanks to factors other than loans.
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