Despite the significant decline in the risk of this type of loans, construction and real estate sectors remain among the riskiest in the country’s economy.
Construction sector has the lowest loan quality, with the NPL ratio reaching- 30.6% in September 2017, down from the 37.7% at the end of last year, while the NPL ratio in the real estate sector fell to 19.3% from 26.9% at the end of 2016. The NPL ratio stood at 35.9% for the construction sector and at 26.8% for the real estate sector in September 2016.
“Even though the construction and real estate sectors saw the most significant decline in non-performing loan ratios (5.3% and 7.5% in September 2016 – September 2017), they remain among the riskiest sectors for banks,” Romania’s central bank says in its financial stability report.
Credit risk has improved in most sectors compared with 2016, except for the utilities sector.
(English version by Loredana Fratila-Cristescu)