In June 2020, the loan-deposit ratio increased slightly, to 70.7% from 70.2% in May 2020.
“Between the end of 2019 and the end of June 2020, the non-government lending grew 1% and deposits of non-government customers rose 3.9%, under the impact of the pandemic and the consequences of this unprecedented shock in the post-war period,” Radulescu also said.
In the first half of 2020, the non-government lending grew on average 5.9% year-over-year, as the impact of the coronavirus pandemic was offset by an unprecedented lax mix of economic policies.
Per central bank data, local currency lending increased on average 8.1% year-over-year, with household and corporate components climbing 12.9% and 1.2%, respectively, year-over-year.
Foreign currency non-government lending rose 1.8% year-over-year in the first half of 2020, with the 9.6% year-over-year increase in the corporate component offsetting the adjustment on the household segment by 8.7% year-over-year.
The share of the national currency lending in the total nongovernment lending increased from 67.3% in May to 67.8% in June (the highest level since the 1990s).
Central bank data also show a slowdown in deposits’ increase, to 13.4% in June, from 13.9% in May, with the national and foreign currency components growing 11.1% and 17.6%, respectively.
Between December 2019 and June 2020, deposits of non-government customers grew 3.9%, due to a 7.7% increase in the household component, to RON239.4 billion (the corporate segment saw a 1.8% adjustment to RON142.7 billion).
Central bank data also show positive monthly progress for the non-government lending (after two months of decline) and a monthly adjustment for non-government customer deposits, due to an ameliorating risk perception and perspectives pointing to a lax mix of economic policies on the medium term.
Private lending in Romania grew 0.4% in nominal terms and 0.3% in real terms in June compared with May, to RON270.118 billion, central bank data showed Thursday. Local currency lending, which accounted for 67.8% of all private lending in Romania, grew 1.1% nominally on the month in June and 1% in real terms. Foreign currency lending dropped 1.2% when expressed both in lei and in euros, the central bank said.