Commercial banks active in the Romanian market reported an aggregated average liquidity surplus of RON 26.9 bln in October, a considerable reduction from RON 39.5 bln in September, according to published statistical data by the National Bank of Romania (BNR), quoted by Economica.net. This may put an end to the decrease and even push up the lending interest rates.

This is the lowest liquidity surplus in banks and the economy since October 2023. The highest value was recorded in January, RON 60.7 bln. 

The evaporation of banks’ liquidity is mostly explained by the increased demand for loans - from bank clients, including the state. From a broader perspective, the liquidity still remains above the usual values.

In September alone, the balance of consumer loans granted to households increased by RON 1 bln, after an increase of RON 1.3 bln in August and RON 1.9 bln in July. 

This surplus of liquidity in the past allowed interest rates to drop at the end of 2023 and the beginning of 2024, including for consumer loans. 

However, average annual effective interest rates (APR) on new consumer loans in lei increased slightly in recent months, from 10.2% in July to 11.1% in September. At the beginning of 2024, interest rates on new consumer loans were at 13%.

iulian@romania-insider.com

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