Romania is facing a structural corporate credit deficit, with the corporate loans to GDP ratio being below 20% of GDP compared to 33% in Central European countries, according to consultancy company McKinsey.

Learning to accommodate higher levels of risk is one of the four opportunities that Romanian banks can take advantage in their attempt to reinvent themselves, according to McKinsey, quoted by Ziarul Financiar. But this will not be done without higher NPL ratios as well, the consultancy firm points out.

"In the macroeconomic context defined by inflation and high interest rates, rising taxes and slowing economic growth, banks will have a challenging mission in increasing lending to individuals and companies, without increasing the share of non-performing loans (NPL)," the McKinsey report reads.

iulian@romania-insider.com

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