The total volume of funding banks granted to individuals and companies topped EUR51 billion (116 billion lei) at the end of August, with the increase being fuelled, as before, by foreign currency loans. Funding largely went to companies, while retail lending was kept afloat only by promotions.
“We had a mortgage promotion in August, so that we did not feel a loan sales slowdown. A slowdown can be felt however in September, which is below the level of past Septembers. I believe global macroeconomic imbalances are having an impact over clients’ decisions,” said Gabriel Cretu, a network and sales manager with OTP Bank.
Foreign currency lending to individuals climbed to EUR66.9 billion at the end of August, up almost 3% from a year ago. Leu-denominated lending to individuals dropped, however, by 4.8% in the past year and hit RON35.6 billion (EUR8.4 billion).
The amount of loans contracted by companies rose by 6.2% from August 2010 and hit RON113 billion (EUR26.8 billion). More than 60% of loans taken out by companies are foreign currency-denominated.
Non-governmental lending rose for five consecutive months after being frozen for almost two years, inclusively amid bankers’ promotions for consumer and mortgage loans. “This was the best summer of the past three years, though. Usually, summer months are not the best for lending because people are on holiday and are not too active,” said Cretu.
Deposits attracted by banks from individuals also continued to go up last month, reaching RON178 million (some EUR42 million). Individuals’ and companies’ savings with banks advanced by 0.5% compared with the end of July and by 5% compared with the same period of last year.
(English version by Catalina Apostoiu)