Key Points:
Overall deposits: Deposits held by non-government clients in Romanian banks increased by 0.9% in April 2024 compared to the previous month, reaching a total of 589.925 billion lei. Compared to April 2023, deposits rose by 11.9% (5.6% in real terms).
Leu deposits: Leu-denominated deposits held by residents, which account for 70.6% of total non-government client deposits, increased by 1.2% from March 2024 to 416.239 billion lei. Compared to April 2023, these deposits grew by 16.4% (9.9% in real terms).
Household leu deposits: Leu deposits held by households increased by 2.3% from the previous month to 231.144.5 billion lei and by 21.7% (15.0% in real terms) compared to April 2023.
Non-household leu deposits: Leu deposits held by other sectors (non-financial corporations and non-monetary financial institutions) decreased by 0.2% (to 185.095 billion lei) from the previous month but were still 10.3% higher (4.1% in real terms) than in April 2023.
Currency deposits: Currency deposits held by residents, expressed in lei, represent 29.4% of total non-government client deposits. They increased by 0.4% from March 2024 to 173.685 billion lei (expressed in euros, they rose by 0.3% to 34.905 billion euros). Compared to April 2023, the lei-denominated indicator grew by 2.4% (1.6% when expressed in euros).
Household currency deposits: Household currency deposits, expressed in lei, increased by 0.8% from March 2024 to 120.616 billion lei (expressed in euros, they rose by 0.6% to 24.240 billion euros). Compared to April 2023, the lei-denominated indicator increased by 0.1% (-0.7% when expressed in euros).
Non-household currency deposits: Non-household currency deposits, expressed in lei, decreased by 0.4% from March 2024 to 53.068 billion lei (expressed in euros, they fell by 0.6% to 10.665 billion euros). Compared to April 2023, the lei-denominated indicator increased by 8.0% (7.2% when expressed in euros). The article mentions a few possible reasons why Romanians might be saving more money in banks: The article also suggests that Romanians might be growing more confident in their domestic currency (the leu) as evidenced by the increase in leu-denominated deposits. This could be due to factors like:
Rising incomes: If Romanians are earning more money, they might have more leftover to save in banks.
Inflation: Inflation can erode the purchasing power of money, so people might save more to maintain their future buying power.
Preference for saving over spending: There could be a general shift towards saving instead of spending. This could be due to economic uncertainty, a desire for a larger financial safety net, or future goals like buying a home.
Additional Notes:
The growth in deposits reflects factors such as rising incomes, inflation, and a preference for saving over spending.
The increase in lei-denominated deposits suggests that Romanians are becoming more confident in their domestic currency.
The data is from the National Bank of Romania (BNR).
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