Romanian banks’ excess liquidity shrinks
<p>Commercial banks active in the Romanian market reported an aggregated average liquidity surplus of RON 26.9 bln in October, a considerable reduction from RON 39.5 bln&nbsp;in September, according to published statistical data by the National Bank of Romania (BNR), quoted by <a href="https://economedia.ro/analiza-excedentul-de-lichiditate-din-banci-a-scazut-puternic-in-octombrie-bancile-primesc-luna-asta-o-infuzie-de-bani.html?mc_cid=d5c39db6cd&amp;mc_eid=cd1f92f96c" rel="noopener" target="_blank">Economica.net</a>. This may put an end to the decrease and even push up the lending interest rates.</p>

<p>This is the lowest liquidity surplus in banks and the economy since October 2023. The highest value was recorded in January, RON 60.7 bln.&nbsp;</p>

<p>The evaporation of banks’ liquidity is mostly explained by the increased demand for loans - from bank clients, including the state.&nbsp;From a broader perspective, the liquidity still remains above the usual values.</p>

<p>In September alone, the balance of consumer loans granted to households increased by RON 1 bln, after an increase of RON 1.3 bln in August and RON 1.9 bln in July.&nbsp;</p>

<p>This surplus of liquidity in the past allowed interest rates to drop at the end of 2023 and the beginning of 2024, including for consumer loans.&nbsp;</p>

<p>However, average annual effective interest rates (APR) on new consumer loans in lei increased slightly in recent months, from 10.2% in July to 11.1% in September. At the beginning of 2024, interest rates on new consumer loans were at 13%.</p>

<p><em>iulian@romania-insider.com</em></p>

<p><em>(Photo source: Elizaveta Elesina/Dreamstime.com)</em></p>