New bank loans in Romania up 28pct eight months into 2024

 Banks in Romania granted personal and corporate loans to the tune of almost RON 114 billion in the first eight months of 2024, up 28% year-on-year, according to data gathered under #Dreptullabanking.ro campaign conducted by banks in Romania.The value of new personal and corporate loans in the first eight months of 2024 made up 27.9% of the August 2024 balance of non-governmental credit. The balance of non-governmental credit, which totalled RON 407.89 billion at the end of August, is calculated as the difference between the total new personal and corporate loans and partial and total repayments, as well as credit sales."Developments in non-governmental credit in the first part of the year confirm a growing public appetite for loans as it accessed 56.4% of the value of new loans, and a constant support that banks in Romania provide to companies. Thus, in the first eight months of 2024, loans of almost RON 50 billion were granted to companies. The breakdown by currencies reveals that in the first eight months of this year, 82.7% of the loans were denominated in the local currency, the leu (RON), 16.38% in euros and 0.92% in US dollars, which shows confidence in the national currency and contributes to reducing currency risk," according to a #Dreptullabanking.ro press statement released on Monday.The banking system in Romania is in an adequate prudential and financial state, with most of its indicators being above the averages of the banking sectors elsewhere in the European Union. The banks in Romania are solid and well capitalised, the solvency ratio reached 24.05% in June 2024, three times above the required minimum. In terms of liquidity, indicators are at comfortable levels and, in addition, the balance sheet structure of banks is oriented towards liquid assets. The liquidity coverage ratio stood at 286.05%, according to March 2024 data, while the European average was 167.1% in December 2023.The provision coverage of non-performing loans was 65.94% in March 2024, much higher than the December 2023 European average of 42.3%, thus securing stability and resilience. The NPL ratio was 2.49% in June 2024, a small difference from the European average of 1.9%.Banks have enough room for manoeuvre to increase lending on a sustainable basis, with all indicators indicating stability, liquidity and resilience being adequate.