Local loan-deposit ratio three times lower than in Denmark

The ratio between total loans by local lenders and deposits made at banks in was 111.1 percent in 2007, according to data centralized by the European Central Bank (ECB) and published by ’s Central Bank (MNB).

Among Central and Eastern European countries, has the highest loan-deposit ratio, at 142.1 percent, followed by , at 139.4 percent.

“The Romanian loan-deposit ratio can be explained by a personal savings deficit, which must be covered by external financing. There is a risk that lending will become more expensive, as the level of interest is currently very good,” according to a member of BRD-Societe Generale Board of Directors, Bogdan Baltazar. “The Danes are smart, they borrow, they do not put off their fun,” he said. According to Baltazar, has no trouble financing savings deficit from abroad, as it has a developed economy.

Ionut Dumitru, Raiffeisen Bank Head of Macroeconomic Research, indicated that when the loan-deposit ratio is high, there is a significant dependence on the foreign currency market and the foreign market, which means significant risks for banks.

Analysts of Austrian Erste group also provided an analysis on the loan-deposit ratio in Europe, with figures slightly different than ECB data. According to the Erste report, the most stressed banking systems are (161 percent), (150 percent), (141 percent), (132 percent) and (122 percent).