Banks granted new loans worth over RON 67 billion (EUR 15 billion) last year, up 5.5% compared to 2015, according to data from Romania’s National Bank (BNR). This represents the maximum of the last five years.

Most of these loans were granted in Romanian currency lei, amounting to over RON 55 billion (EUR 12.2 billion) or 82% of the total, reports local Ziarul Financiar.

Corporate loans accounted for the largest bulk of the new loans (55%), namely some EUR 8.2 billion, whereas the consumer and mortgage loans totaled some EUR 6.7 billion. However, banks still have a lot to recover when compared to the peak year 2008. The volume of new loans then amounted to over RON 100 billion, about 50% more compared to the current level.

Both the retail and the corporate new loans recorded increases in 2016, but the main engine was the retail lending, especially consumer loans. New retail loans rose by 7.5% compared to 2015 whereas the corporate loans went up by 3.9% year-on-year.

The new lending wave is supported by loans in Romanians currency lei, which accounted for 82% of the total new loans. At stock level, the share of loans in lei represented almost two-thirds at the end of 2016.

The banking sector increased by only 1.2% last year whereas the economy went up by almost 5% in 2016.

editor@romania-insider.com