At the end of May 2025, broad money (M3) in Romania reached RON 749.9 billion (~€151.2 billion), up 0.9% month-on-month and 8.7% year-on-year, according to data from the National Bank of Romania (BNR). Adjusted for inflation, the real annual growth rate stood at 3.1%.
Loans to the non-government sector rose by 1.5% month-on-month to RON 431.8 billion (~€87.1 billion), with a 9.7% annual increase. The growth was primarily driven by RON-denominated loans, which make up nearly 70% of all non-government lending. These rose by 11.3% year-on-year, while foreign currency loans increased by 6.2% (both expressed in lei). In real terms, lending growth was also robust, supported by continued credit demand from businesses and households.
Meanwhile, credit to the general government expanded by 3.4% in May to RON 260.4 billion (~€52.5 billion), marking a significant 21.5% annual increase, or 15.2% in real terms, highlighting the ongoing financing needs of the state amid economic reforms and public investments.
Deposits See Currency Shift
Total resident non-government deposits rose 0.8% month-on-month to RON 634.4 billion (~€127.9 billion), showing a solid 7.1% increase year-on-year. However, the composition of deposits shifted notably in May.
RON-denominated deposits, which account for 67.6% of total deposits, declined by 2.4% in May to RON 428.9 billion (~€86.5 billion). Household RON deposits dropped 2.9%, while business and institutional deposits fell 1.8%. Over a 12-month period, household RON deposits still registered 8.0% growth, but other sectors saw a 4.3% decline.
In contrast, foreign currency-denominated deposits gained significant ground, increasing by 8.2% month-on-month to RON 205.5 billion (~€41.4 billion). Year-on-year, they rose by 18.3% in RON terms, as households and businesses alike sought refuge in foreign currencies.
Household foreign currency deposits climbed 6.6% in May, reaching RON 138.3 billion (~€27.9 billion), up 14.9% from a year earlier. Deposits from other sectors surged 11.6% month-on-month and 25.8% year-on-year, highlighting increased FX exposure across the economy.
The data paints a nuanced picture of Romania’s banking sector: Strong lending growth, across both private and public sectors, underscores robust credit demand, economic expansion, and strategic public investment. Deposit outflows from RON into foreign currencies suggest rising inflation expectations or risk diversification by residents. The growth in FX deposits could impact liquidity management and currency risk for banks.
