THE BANKING SECTOR’S ASSETS IN ROMANIA. DEVELOPMENTS OVER THE PAST DECADE AND MID-RUN PROSPECTS
The total assets of the banking sector in Romania increased significantly over the past decade, from RON 364.1 billion at the end of 2014 to RON 881.7 billion at the end of 2024, according to the statistics of the National Bank of Romania (NBR). This evolution was supported by several factor...
Saved in:
| Main Author: | |
|---|---|
| Format: | Article |
| Language: | English |
| Published: |
“Victor Slăvescu” Centre for Financial and Monetary Research
2025-06-01
|
| Series: | Financial Studies |
| Subjects: | |
| Online Access: | http://fs.icfm.ro/Paper02.FS2.2025.pdf |
| Tags: |
Add Tag
No Tags, Be the first to tag this record!
|
| Summary: | The total assets of the banking sector in Romania increased
significantly over the past decade, from RON 364.1 billion at the end of
2014 to RON 881.7 billion at the end of 2024, according to the statistics
of the National Bank of Romania (NBR). This evolution was supported
by several factors, including Romania's economic convergence
towards the EU average. However, Romania continues to be a country
with a very low banking assets-to-GDP ratio, below 50%. In this paper,
we employ standard econometric tools and utilise quarterly data from
NBR, Eurostat, and the Shillerdata platform to assess the evolution of
the banking sector’s assets in Romania over the past decade. The
main result of our analysis shows that the increase in banking assets
was more dependent on the financing needs of the Government than
on the evolution of the nominal GDP in Romania. This, in turn,
represents a risk factor for the evolution of economic activity, for the
macroeconomic stability and for the monetary policy transmission at
the moment of the outbreak of the following shocks. |
|---|---|
| ISSN: | 2066-6071 |