Total lending has been decreasing in Romania but a gradual comeback is expected as economic recovery in Romania relies on sturdier fundamentals. Corporate lending decreased 5% on the year in 2013 and a further 6.3% in 2014, following harsher standards and banks are having difficulties due to accelerated write-offs, according to the Deloitte study ordered by local banking industry association CPBR.
Corporate lending is expected to pick up this year, with a growth of 2.1% in 2015 and a more optimistic 4.1% next year.
The study notes retail lending will grow 2.6% this year and 5.2% in 2016, while the indebtedness rate on consumer lending is seen decreasing from 10.3% in 2014 to 1.1% this year and back up 2.9% next year.
Mortgage lending is expected to grow 7%-8% in the next two years.
On the other hand, deposits are seen growing at a much slower pace, by just 0.9% this year and 1.1% in 2016, from 7.5% last year.
Deposits rose 6.8% in 2013 and 6.4% in 2014 and their growth is seen slowing at 4% a year in 2015-2016, as interests are low and customers prefer alternative investments.