Loans to non-financial corporations

As shown in the Bank Lending Survey – February 2020, published by the National Bank of Romania on March 2nd, in the final quarter of 2019, credit standards for non-financial corporations changed marginally, both at aggregate level and by company size and loan maturity. Most of the factors that may have a bearing on credit standards did not impact the latter. The only elements that played a role in the tightening of credit standards were the current or expected capital position of the bank, as well as the NBR’s monetary policy decisions and prudential measures.

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Developments in inflation

The National Bank of Romania has published the Inflation Report for November 2019. As shown in the report, the annual CPI inflation rate returned to the upper bound of the variation band of the flat target of 2.5 percent ± 1 percentage point, ending 2019 Q3 at 3.49 percent (0.35 percentage points below the June level and 0.2 percentage points below the latest forecast). Behind the disinflationary trend stood mainly the declines in vegetable prices amid a good harvest across the EU. Opposite influences stemmed from tobacco product prices and the slightly faster growth of the adjusted CORE2 inflation rate, indicating the persistence of inflationary pressures from fundamentals.

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NBR – Bank Lending Survey

The National Bank of Romania has published the Bank Lending Survey – August 2019. The Survey is conducted on a quarterly basis by the NBR in January, April, July and October. It is based on a questionnaire (released as part of the May 2008 analysis) which is sent to the top 10 banks. These banks were selected based on their market share in terms of loans to companies and households, accounting for approximately 80 percent of the loan stock.

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Financial Stability Report

As shown in the Financial Stability Report June 2019 published on June 5th by the National Bank of Romania, the financial stability has remained adequate since the release of the previous Report, yet the associated risks are on the rise, amid global economic and financial developments marked by heightened uncertainty, alongside the resurgence on the domestic front of the risk of an uncertain and unpredictable legislative framework in the financial and banking sector.

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