The retail segment margin, however, fell by some 0.2%, as new loans became cheaper because of the decline in interbank rates. The downward trend started with the central bank’s decision to resume the monetary policy relaxation cycle in July, after suddenly stopping it in May 2012.
Banks are keeping the interest margin on the retail segment at almost 6.5%, higher than the last two years’ low of 5.4% recorded in January 2012. Individuals are borrowing at 11.1% a year on average and are getting 4.6% a year on average for their deposits.
Banks rushed to cut deposit rates and most large lenders went as low as around 3% a year for twelve months. Retail deposit interests fell 1% in the last six months and corporate deposit interests fell by 1.5%.
The central bank has cut the monetary policy rate to a low of 4% a year since July. Interbank rates are down at all time lows, as well.
Loan interests, on the other hand, are slow to catch up. While deposit interests were quickly cut, banks continued to use the late June ROBOR to calculate loan interests until recently.
(English version by Loredana Fratila-Cristescu)