“Money mostly went towards consumer spending. It’s clear that (…) with the interests so low and deposits no longer rewarded as people expect them to, some money will go towards consumer spending,” explained economic analyst Aurelian Dochia.
Banks paid 1.6% average interest for new leu deposits in November, an all-time low.
Minimum wage was raised several times in 2015, which gave consumer spending a boost. The growth is expected to continue in 2016. Romania was among the European countries with the highest rates of consumer spending increase.
The VAT drop from 24% to 20% as of January 2016 is expected to stimulate consumer spending, as well, so deposits made by retail customers may decline further.
Some analysts say that consumers no longer putting their savings in banks is not alarming.
“That deposits no longer went up is not alarming. It is exactly as intended. Banks have enough cash, have more deposits than loans, which means they have no interest to attract deposits as quickly as possible,” Dochia said.
(English version by Loredana Fratila-Cristescu)