This is the highest level recorded since the summer of last year, when the first signs of a lending rebound emerged, which were then quickly stifled by the fiscal austerity measures.
“This is a time of the year when loan demand sees a natural rise, with demand always higher in the last few months of the year than in other periods. Most banks have announced an extension of their various promotional offers until the end of the year, which leads to an increase in loan demand,” said Adrian Jantea, promotion and distribution manager within BRD SocGen.
The monthly number of queries sent by banks to the register had exceeded 300,000 only in July 2010. Banks check the indebtedness of every prospective client in the process of analyzing the credit application, so the number of queries gives a good approximation of loan applications.
However, the increase of private sector lending slowed down in October, despite the higher number of applications, with new financing barely managing to cover repayments.
Companies and individuals had loans worth a cumulated RON221 billion (EUR50.7 billion), similar to the level recorded in the previous month.
Clients are still reluctant to become indebted, so demand is by no means similar to that recorded during the boom years of lending, when bankers requested information even about one million prospective clients in a month. Banks in turn, are not willing to lend to just anyone, and check every client in more detail than before.
Data in the register, the BNR department that manages data on loans granted by banks, refers only to clients with loan higher than RON20,000 or equivalent to that amount. (EUR1=RON4.3534)