Banks have managed to guess the code of Romanians

We save money in lei and we take loans in foreign currency

The repeated increase for interests to deposits seems to have touched at least partial the goal. Romanians begin to deposit their savings in bank lured by the profitability of the placement. Moreover, the Romanian leu is preferred when it comes about deposits, however it isn’t chosen when it comes about loans. In other words, we save money in lei, but we take loans in foreign currency. At the end of June, the deposits in banks, in lei and currency, totalized 21,4 billion euro while the value of the credits was amounted to 23,8 billion euro.

From the beginning of the year, most of the commercial banks have announced successively increases for interests to deposits, especially for those in lei, and not once, but almost weekly, so now they’ve reached in case of some promotions, to be between 15-17% for lei. The experts “blame” BNR, explaining that the decisions taken during last months “forced” the banks to seriously think to the money of the population. So, in terms in which the interests for loans on three months on the interbank market are with a few percentages higher than the ones offered to the population, it is easy understandable the interest for attracting the savings towards deposits. A while ago, Eugen Radulescu, the counsellor of BNR’s governor mentioned about a “fight between the banks for drawing the resources from the population”, thing that seems to already be happen. The saving offers are multiple and obvious the traps or the unexpected costs don’t miss. Even in these terms the bank deposit, especially the one in lei, is considered to be an alternative worthy of being taken into account by the ones that want to save money. Only that, as in case of the credits is indicated to pay attention when examining the offer and to make a clearly distinction between the ones that are promotional and the ones that are on the entire period of the deposit. Costs shouldn’t be omitted, because there are still banks that perceive taxes for opening the account or commission for withdrawing the money or for administration. To all these is added also the tax of 16% applied to the incomes derived from interests, tax that is retained by the bank and transferred in the public account. The maximum recorded for the interest to the classic deposits in lei is of 11,5%.

Bank offers

For example, Alpha Bank offers the variant of the deposits on several periods from a month till one year, in lei, dollars, euro and Swiss Franc. The interests offered for lei start from 9,25% for a month and increase till 10,25% for six months following then to decrease again to 9,25% for 12 months. There is also a special offer for students and retired persons, that means a plus of 0,5% for interest. For euro, the maximum interest reaches to 5,25% for deposits on 3 and 6 months, while for dollar the maximum is of 3% on 3, 6, 9 and 12 months. Otherwise, almost all banks have unattractive interests for foreign currency, this being part of their strategy for attracting lei. To BRD, the Deposit 100 is just for drawing in the national currency, with fixed interest guaranteed on the entire period of forming. It starts from 9,5% on 3 months and reaches to 10% on six months and one year.

Also to BCR, the deposits in lei are the most tempting, the list including a fixed or variable interest and periods that start from one month and reach to 36 months. For example, for a deposit on three months with fixed interest the offer is of 9,5% for values between 1.000 and 5.000 lei and 10% for values over 5.000 lei. In what concerns the variable interest this is much smaller, from 8,5% to 9%.

A foray of the banks shows that the best interest practiced now for the deposits in lei is figured to 11,5%. This if we don’t take into account the progressive interests of up to 17% that are part of the strategy of marketing of some banks.Banks as Bancpost, Piraeus or Alpha Bank have included in the offer the possibility that for a certain sum the interest to increase from one month to another, the starting point being of 6,5% in the first month and the maximum of 17% being offered in the last month. Besides the clear intention of the banks to persuade their clients to keep the money in the account on long term, the calculation shows up that the profitability of this type of deposit is much smaller, even with 2-3% smaller than the one of a classic product.

21,4 billion euro in deposits

The most recent data published by the National Bank of Romania show that more and more Romanians take into account the variant of depositing the savings in a bank deposit. And not in any kind of deposit, but in national currency. In terms in which the credit in foreign currency keeps on representing the main element, we can state without equivoque that Romanians save money in lei, but they take loans in foreign currency.

The experts explain this from the point of view of the big interests that banks have announced lately for deposits, the more pointed out increases being the ones in lei. And after months of consecutive increases it seems that at least partially the goal was touched. So, last month the deposits in lei and foreign currency of the population have accelerated the annual advance to 40,1%, against 39,8% in May.

The “engine” was this time the leu, the deposits in the national currency being double against the ones of the savings in foreign currency. Per total, the population and the business environment have totalized till the end of June, 38,6 billion euro, with 2,5% more against May, in terms in which the deposits in foreign currency have increased with 1,5% and the ones in lei with 3%. It must be mentioned that the savings in lei of the population have reached to the impressive value of 49,96 billion lei, that means 13,6 billion euro. In total, the Romanians had at the end of last month deposits in banks, in lei and foreign currency, amounted to 77,9 billion lei, respective 21,4 billion euro.

We take loans in foreign currency

Even if the national currency is preferred when it comes about banking deposits, not the same can be said about loans. Here the foreign currency is at power, either we make reference of population or business environment. So,last month, the advance for the credits in foreign currency was twice faster than the ones in lei, according to the most recent data of BNR. The non governmental credit was amounted at the end of June to 178,18 billion lei (48,85 billion euro), with 3,7% more than in May. By far, the biggest increase was recorded by the loans in foreign currency granted to the population, with 6,5% against the previous month and with 131,5% against the same month of last year, reaching to 13,4 billion euro. Slower was the increase rhythm of the credits in lei, plus 1,8% against May and with only 36,4% against June 2007, the total sum being the equivalent of 10,4 billion euro. The loans in foreign currency continue to be preferred, 55,8% of the total of the granted loans being in euro, dollar or exotic currency.

One Romanian out of three saves money

A survey realized by Aviva in 25 countries from Europe, Asia and Northern America shows that 70% of the Romanians don’t save money and don’t invest one leu. Moreover, almost a third of our conationals prefer purchasing in the detriment of investments. Although, 17% of the ones that manage to save money collect about 300 euro monthly and 12% don’t save more than 200 euro monthly. Otherwise, the indifference for saving money is a general characteristic in the countries from the Eastern and Central Europe. As we got used, for us is worse than for others, Romania being the last ranked at the chapter the average number of savings or investments products owned with only 0,7 products/respondent, the European average being of 2 products for each respondent. In the region, our country is classified in the middle of the top at expenditures versus savings. Among the reasons invoked by Romanians that spend more, the main reason is represented by “the impossibility of saving”, 60% of the participants to the survey invoking this reason.

The saving accounts, favorite

Among the Romanians which save money, a fifth (19,5%) keep their money in a current account. Others 9,5% allocate a part of the wage to the pensions that are paid through the employer. Also, 7,9% of the ones that save money have chosen a saving account, and 5,5% an insurance policy with investment component (unit-linked). For stocks and bonds opt 4,7% of the Romanians that save money, 1,6% choose other instruments for saving money with unique bonus, 1,5% have an individual plan of pension and only 0,8% of the Romanians that save money have deposited savings in investment funds.