The Analysis of the Loan Indebtfulness Degree of Romania’s Population During the Years 2002- 2019

Abstract

The financial system is a set of arrangements and conventions that facilitate the transfer of money from its holders to those who need it. Our study performs an analysis of loans offered by banks to individuals. The loans have been granted, following the requests, both in lei (the national currency of Romania) or in the international currency as well. The analysis is performed based on data provided by the National Bank of Romania and the National Bank Deposit Guarantee Fund of Romania (FGDB) and presents the situation in each county and development region in Romania. Methodologically, in this study there have been rendered as for the period 2002-2019, two aspects: firstly the ratio between loans in national currency compared to loans in international currencies and, secondly, the relationship between accessing and the evolution of loans for houses/ flats in relation to the access and evolution of loans for personal needs, both in the national currency or in the international currency as well. A special analysis showed a clear representation of the way the situation has been treated, for both mentioned aspects, as well as the distribution of the results on the geographical regions of Romania. In this way, the results highlight the differentiated behavior of the population in each geographical region. The present study is only a part of a much more detailed analysis that follows the analysis of the indebtedness of the Romanian population, in which other indicators are also present.

Connecting demographic growth to housing prices in Bucharest’s neighbouring towns

“…Many buyers of smallsized properties (studios or one-bedroom apartments) can rent or sell them after paying them off. However, many rely on a bank loan, and rather than being perceived as a negative element, it is considered beneficial (Lee et al, 2006;Yildirim et al, 2020;Teodorescu et al, 2021).…”