Romanian banks extend 48% y/y more new loans in Q1
<p>The volume of new local currency loans extended by Romanian banks (including refinancing loans) increased by 48.0% y/y to RON29.6bn (some EUR 6bn) in Q1, according to <a href="https://www.bnro.ro/Baza-de-date-interactiva-604.aspx?mc_cid=fa807cee73&amp;mc_eid=607bd7d763" rel="noopener" target="_blank">data </a>published by the National Bank of Romania. Most of it was retail lending.</p>

<p>The new loans extended to&nbsp;households (retail lending) surged by 83.5% y/y to RON20.8bn, and their share reached 70% of total new loans extended in local currency by the Romanian banks, up from 57% in Q1, 2023.&nbsp;</p>

<p>"If the lending to&nbsp;households for consumption and housing purchased is so high and the corporate lending lags so much behind, you end up in a situation where the real economy fails to contribute to economic growth and, ultimately, in the long term, fails to provide jobs of work and competitive salaries," commented ASF vice-president, board of directors of CFA Romania Andreea Nica for <a href="https://www.zf.ro/eveniment/andreea-nica-vicepresedintele-cfa-avertizeaza-asupra-modelului-22367276?mc_cid=fa807cee73&amp;mc_eid=607bd7d763" rel="noopener" target="_blank">Ziarul Financiar</a>.</p>

<p>The retail loans were roughly equally shared between mortgage (RON10.7bn, +107% y/y) and consumer (RON9.9bn, +66% y/y) loans in Q1 this year.</p>

<p>Of the EUR 1.15bn (RON5.7bn) new loans extended by banks in Q1 this year, only 2.2% were retail loans.</p>

<p><em>(Photo: <a href="https://www.dreamstime.com/" rel="noopener" target="_blank">Kittichai Boonpong/ Dreamstime</a>)</em></p>

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