SIMILAR ARTICLES

Draft law: Tax regime for foreign companies’ profits obtained in Romania is changing

The Ministry of Public Finance (MPF) will propose to the Government another emergency ordinance for amending the Tax Code and the Tax Procedure Code, after… Mai mult

Ups! EU economy is slowing down, and that will inevitably affect us

The economy of the European Union recorded in the second quarter of 2019 the worst evolution of the last five years, with a quarterly increase… Mai mult

How we stand compared to Eurozone. Differences between economic indicators

Romania announced its intention to join the Eurozone in 2024. Adoption of the single European currency is not optional but included in the Treaty of… Mai mult

How did Estonia reach the world top in digitalization. INTERVIEW: Margus Noormaa, General Director of the Estonian Information System Authority

Estonia is well-known as a phenomenon of digitalization. On the official website of the European Commission it is mentioned to be „Estonia is probably the… Mai mult

Salaries in companies with domestic capital increase faster but remain half the level in foreign companies. Why

Salaries in domestic companies continue to grow as staff shortage widens, but remain half the level registered in foreign firms, according to an analysis by… Mai mult

Cronicile

BNR: Banks have tightened credit standards for population and SMEs

de Adrian N Ionescu 4.6.2017

Credit institutions have tightened credit standards for the population in the first quarter of 2017 for both consumer credit and home and land loans (mortgage loans), according to the lending survey conducted by the National Bank of Romania (BNR).

For companiescredit conditions have been maintained at a constant level, except for the short-term loans to small and medium-sized companies.

Credits for population

“Credit standards moderately tightened in Q1/2017 for both mortgages and consumer loans, this evolution being based on the monetary or prudential policy decisions made by the National Bank of Romania,” the BNR report said.

For Q2/2017, credit institutions participating in the survey “forecast a marginal tightening of standards for home and land purchase loans and a significant tightening of the consumer credit,” according to the source mentioned.

On the other hand, according to the reports of the Eurozone banks, credit standards related to both mortgages and consumer credit have lessened in Q1/2017. “The forecast for the next quarter shows that credit standards for all types of loans to the population will maintain constant,” BNR added in the report.

*

  • Evolution of the credit standards for population

*

BNR noted in Q1/2017 “a mixed evolution of the terms of credit agreements for home and land purchases”.

“The debt and maximum maturity requirements have marginally tightened, while the conditions for the maximum loan weight in the value of the mortgage collateral (LTV) and the spread of the average interest rate of the credit against ROBOR at 1 month have moderately, respectively marginally relaxed“.

*

  • Terms of mortgage lending

*

Residential real estate prices rose in Q1/2017, according to the reports from credit institutions participating in the survey. Banks estimate that this trend will continue in the second quarter.

“Demand for housing and land purchase loans increased significantly in Q1/2017, and credit institutions forecast that it will have a significant advance over the next three months as well. In Q1/2017, the ratio of loan requests rejected by banks remained relatively unchanged in the mortgage category,” the report said.

The report also shows that in the first quarter of 2017, the demand for credit significantly increased both for consumer loans and housing and land purchase loans.

*

  • Evolution of credit demand

*

The main factor contributing to this evolution was the BNR’s monetary or prudential policy decisions, “particularly the requirements for assessing the creditworthiness of borrowers“.

Credit institutions anticipate a significant tightening of credit standards for consumer loans and a marginal tightening for mortgage loans in the next three months. As far as the non-financial companies are concerned, it is expected that “credit standards to remain in Q2/2017 at a similar level to the current one,” the report said.

Corporate loans

For the non-financial companies, “credit conditions have maintained at a steady level compared to the previous period, except for the short-term loans to small and medium-sized businesses, for which conditions have moderately tightened.

The credit risk associated with most business sectors remained relatively constant in Q1/2017, except for the energy sector where it recorded a significant advance, as well as the construction and tourism sectors, where it increased with a moderate amplitude.

*

  • Evolution of credit risk by sectors of activity

*

Demand for loans to non-financial companies posted a marginal advance.

“In the structure, short-term financing needs have moderately increased among both large and small and medium-sized companies. In the case of long-term loans to large companies, there were no notable changes,” the report says.

*

  • Dynamic of corporate loan demand

*

BNR notes that the survey is conducted quarterly by the institution in January, April, July and October. It is based on a questionnaire (published in the May 2008 analysis) sent to the top 10 banks by market share in terms of credit to companies and population. These institutions hold about 80% of the lending to these sectors.

Mergeți în homepage ›

Publicat la data de 4.6.2017

Lăsați un comentariu


NEWS

IMM Invest Romania – program implementing rules have been published

The Ministry of Public Finance announces that it has issued the methodological norms for the implementation of the Program for supporting small and medium-sized enterprises… Mai mult

Pollution import and car park expansion: comparisons with the other EU states

Romania is the EU country with the fewest cars in terms of the number of inhabitants, according to data recently published by Eurostat. We appear… Mai mult

Government is trying to save budget deficit: reductions in public administration system, cancellation of bonus for harmful conditions, excise duty on soft drinks

The Government is preparing the public for the first measures aimed at avoiding the budget slippage, which would be applied by the PSD-ALDE government. News… Mai mult

Laura Codruta Kovesi remains alone in the race for European Chief Prosecutor

French Prosecutor Jean-Francois Bohnert will be appointed as head of the European Financial Prosecutor's Office, a position for which he was heard on Thursday, 11… Mai mult

Romania - EU country with highest risk of dying in a road accident, Bulgaria is quickly decreasing number of victims since it built motorways

Romania recorded the highest road deaths in the EU also last year, with 96 deaths per one million inhabitants in 2018, almost double the EU… Mai mult

Latest developments in progress at Health Ministry: Differentiated wages based on performance, competitions organised at a regional level not by hospitals

Sorina Pintea announced on Thursday further new changes that will be brought to the functioning of the health care system, including new rules for employment… Mai mult

ANAF changes selection procedure for liquidators. Main changes

The new order on approval and selection procedures for insolvency practitioners is an important step to a very good direction, industry experts say. ANAF is… Mai mult

Romania loses competition for a seat at UN Security Council. MAE Excuse: Campaign started too late

Romania lost to Estonia in the final vote to get the non-permanent member position within the UN Security Council for the period 2020-2021. On Friday,… Mai mult

Business internationalization / eMAG makes a step to entry five new international markets and targets a business of EUR 2 billion

eMAG hopes to get the opinion of the Hungarian Competition Council over the next two months for the acquisition of Extreme Digital, the market leader… Mai mult

"At a distance from books": 85,000 teachers (one third of educational staff) are graduates of distance learning

Approximately 85,000 teachers are graduates of distance learning (ID) programs, Education Minister Ecaterina Andronescu said at a meeting with school inspectors from Caras-Severin County. The… Mai mult

Mugur Isarescu: We should make a film for Viasat History about treasure in Moscow

A book should be written or a movie should be made and sent to Viasat History about a treasure evacuated to Moscow, as it is… Mai mult

Rhythm of commercial vehicle registration increases 3 times faster in Romania than EU average

Today, the European Automobile Manufacturers Association (ACEA) announced the status of commercial vehicle registrations in EU member states + EFTA in April and cumulated after… Mai mult