The stock of deposits had contracted by around EUR2 billion between December 2011 and December 2013, amid a broader deleveraging process, in the wake of which parent banks’ funding slid by 30%.
Medium and long-term deposits, which had peaked at EUR8.6 billion in 2011, in the first crisis years represented a form of funding through which parents supported their subsidiaries in Romania. Subsequently, cash-strapped foreign banks tried to push subsidiaries to rely more on domestic funding.
Analysts say that the large stock of household deposits, of around RON130 billion (EUR30 billion) secured the diversification of banks’ funding sources in the context of deleveraging, which is expected to continue, if not accelerate, in the coming period.
An overnight outflow from nonresidents’ deposits is out of the question owing to the longer maturities.
(English version by Catalina Apostoiu)