BNR: Banks forecast a tightening of the consumption loans standards and unchanged mortgages in Q1 2017

Banks forecast a tightening of the consume loans standards after a similar evolution at the end of last year, while the mortgage loans will be unchanged in the first quarter of 2017, after two easing quarters, according o a survey of the National Bank of Romania (BNR) regarding the loans for the non-financial companies.

However, the loans demand increased significantly both for consume loans, as well as for mortgage loans in the last quarter of 2016.

„The evolution from the last two quarters shows the close of a short important tightening cycle for the loan standards affiliated to the mortgage loans in the context of adoption the Law no. 7/2016 regarding the debt discharge bill for some properties,” said BNR.

Also, the banks said that some factors such as the monetary policy decisions or prudence policy of BNR were the most important ones that led to the tightening of the mortgage and consume loans standards tightening.

At the same time, credit institutions considered that the competition change in the banking sector had a positive effect in the easing of loans standards for mortgage loans.

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Banks also say that prices on the real estate market increased in the last quarter of 2016, but in the next quarter will be relatively stable.

Despite the tightening estimations of loans standards for the first quarter of 2017, banks estimate a growth in the consume loans demand.

Georgiana Bendre