The stock of bank loans in Romania increased by 6.8% y\/y to RON 404.0 billion (EUR 81.3 bln) at the end of July, accelerating slightly from +6.7% y\/y at the end of June and +6.4% y\/y at the end of 2023.<\/p>\n
Speaking strictly of the loans denominated in local currency, it seems retail lending is gaining ground faster, but the foreign currency corporate lending compensates for part of the discrepancy.<\/p>\n
The still significant inflation (+5.4% y\/y in July) erodes the nominal rise in the stock of bank loans to a slim 1.4% real annual advance \u2013 a significant improvement from the negative annual growth rates in 2023.<\/p>\n
The banks were more active in extending loans denominated in local currency, with the stock of loans denominated in lei (RON) rising by 8.8% y\/y at the end of July (+2.6% y\/y for the loans denominated in foreign currency expressed in RON) to RON 280.6 bln (69% of the total stock of loans).<\/p>\n
Of the local denominate loans, the loans extended to households (59% of the local currency loans) boasted a stronger growth rate: +10.6% compared to only +6.3% y\/y advance for the stock of corporate loans denominated in local currency. The discrepancy has widened from June, when the growth rates were +9.6% y\/y and +7.3% y\/y, respectively.\u00a0<\/p>\n
Indeed, when it comes to foreign currency loans, corporate lending is far more active (+77.2% y\/y to RON 104 bln), while retail lending is being phased out (-17.2% y\/y to RON 19 bln).<\/p>\n