Romanian Household Loan Demand Seen Rising Slightly In Q4

„(Third quarter) loan demand remained in negative territory for both consumer and mortgage loans, with consumer loans recording the highest correction. Banks expectations are positive, anticipating a slight demand recovery in Q4/2010,” the survey noted.

The central bank said credit standards for household mortgage loans eased slightly in the third quarter of 2010, while standards for consumer loans were unchanged on the quarter.

In the corporate sector, Romanian banks estimate loan demand will continue to decline by year-end, despite a slight revival of short-term loan demand in the third quarter.

„Credit standards remained unchanged in the third quarter. It is possible the credit standards tightening cycle have come to an end, banks considering the current level is adequate to the debtors profile and loans typology,” the central bank said.

According to the central bank, risk perception rose in all economic sectors, with construction and real estate seen as the riskiest sectors. Banks’ risk perception on large companies remained unchanged on the quarter.

The central bank’s quarterly lending survey polls the top ten Romanian banks by market share for corporate and household loans.