Banks increased interest rates on deposits

The bank, owned by the FIBA group, is the sixth player on the market to make such a move, following Banca Comerciala Romana (BCR), OTP, Banca Transilvania, Bancpost, and Banca Romaneasca, due to a correlation trend of maturities of balance sheet assets and liabilities. Although the increase in interest rates on deposits means more money for depositors and greater expenses for banks, the lenders do not actually have a choice about attracting more resources from depositors to be able to grant loans, on the back of more expensive external financing.

Credit Europe increased annual interest rates on one-month RON deposits up to 7 percent, and on three-month and six-month deposits to 7.25 percent and 7.50 percent, respectively. For nine-month deposits, the bank announced a 1 percent increase, to 7.75 percent, and for one-year deposits a 1.25 percent rise, to 8 percent, according to company data.

In terms of euro deposits, Credit Europe Bank raised interest rates by 0.5 percent, up to 4.25 percent for one-month deposits, 4.50 percent for three-month deposits, and 4.75 percent for six-month and nine-month deposits. The interest rate for a one-year euro deposit is 5.25 percent, from 4.75 percent.