The volume of new household and corporate bank loans offered in the first four months of this year stands at approximately EUR 3.6 bln, Romanian Banking Association’s Communication Commission President Gabriela Folcut stated at the Summer Banking Academy event organized by the Romanian Banking Institute.
She made the announcement against the backdrop in which banks hope that the non-government loans balance will return on positive territory in 2015 after a long slump in the annual rhythm, a slump caused by the banks’ process of cleaning up their balances but also by the servicing of principal payments which when cumulated surpass the value of new loans.
According to Association data, the government loans balance stood at EUR 19.4 bln, while the non-government loans balance stood at EUR 47.53 bln.
On the other hand, the ARB representative pointed out that in March 2015, for the first time in the last seven years, the loans/deposits ratio has become subunitary, standing at 93.68 per cent.
At the same time, the volume of deposits has grown constantly according to ARB data. From 2008 to 2015 the volume grew by 75 per cent, to RON 228 bln. Moreover, considering the losses registered by the banking system in 2009-2014, which stand at a net consolidated level of EUR 1.6 bln, during the same period bank shareholders brought in supplementary capital of EUR 1.8 bln.
In this context, the ARB representative pointed out that the banks but also other economic factors have to exert efforts in order to resume crediting.
For this purpose, it is necessary to avoid imposing regulations that affect the banks’ capacity to back the real economy, both at European and national level, to maintain financial discipline, to adopt measures that would lead to the return of confidence in the economy, to maintain the predictability of the legislative framework and to promote specific guarantee instruments that would generate growth in confidence.