Romania experiences a nominal decrease in domestic bank deposits during the first half of the year, as people increasingly opt for foreign currency savings.
In the latest data published by the National Bank of Romania (BNR), foreign currency loans and deposits have shown a significant increase in June 2025.
The stock of foreign currency loans rose by RON 2.0 billion during the month, marking a 1.5% m/m increase. This growth accelerated from 3.3% y/y at the end of December 2024 to 7% y/y in June 2025.
The majority of these foreign currency loans, amounting to RON 115.7 billion, were extended to companies and non-monetary financial institutions. In contrast, loans denominated in local currency accounted for nearly 70% of the total bank loans to the private sector, a figure that decreased to 67% in June 2025.
The annual growth rate for foreign currency deposits was 18.5% y/y in June 2025, while local currency deposits grew at a rate of 2.9% y/y. The stock of local currency deposits decreased to RON 423.6 billion at the end of June 2025, and the total stock of deposits in Romanian banks fell to RON 629.2 billion. Simultaneously, the stock of deposits in foreign currency increased to RON 205.5 billion.
While there is no specific data in the search results indicating a shift towards foreign currency deposits in Romanian banks in 2025, economic uncertainty, interest rates, inflation, and euroization trends could potentially influence such a shift.
Economic uncertainty and currency volatility might prompt individuals and businesses to opt for foreign currency deposits as a hedge against potential devaluation of the local currency. Changes in interest rates and inflation forecasts could also influence deposit preferences, with domestic interest rates low or forecasted to decrease potentially encouraging individuals to prefer foreign currency deposits for better returns or stability.
In neighboring regions, trends like euroization (using the euro as a store or medium of exchange due to its perceived stability) have been observed. While not directly mentioned in the context of Romania for 2025, such trends could potentially influence deposit preferences in nearby countries.
For a definitive answer on the shift towards foreign currency deposits, detailed data from the National Bank of Romania or specific analyses of deposit trends in Romania would be necessary. The recent economic trends and decisions by the Romanian central bank could influence financial decisions about deposits.
In addition, the stock of bank loans expressed in local currency increased by RON 3.2 billion during June 2025, resulting in a 1.1% m/m rise. The annual growth rate for loans denominated in local currency decreased to 10.0% y/y in June 2025, down from 11.5% y/y at the end of last year. The loans denominated in local currency rose above average by 10.0% y/y.
The total stock of bank loans to the private sector increased to RON 436.9 billion at the end of June 2025, reflecting the overall growth in both local and foreign currency loans and deposits.
In light of the increase in foreign currency loans and the growth in foreign currency deposits, it appears that there might be a gradual shift towards foreign currency finance in Romania, potentially influenced by economic uncertainty, interest rates, inflation, and euroization trends.
The decrease in the annual growth rate for local currency deposits, in conjunction with the increase in foreign currency deposits, could further hint at this shift towards foreign currency finance.
