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Bank Lending To Non-Financial Corporations In Romania During 2016-2025

Author

Listed:
  • RĂDULESCU, Andrei

    (Institute for World Economy, Romanian Academy, Romania)

Abstract

Bank lending to non-financial corporations has long been an important source of financing investments in the real economy, especially in European countries. However, following the outbreak of the Global Financial Crisis 2007-2009, the share of lending to non-financial corporations in GDP has diminished, at least in the Eurozone (the central component of the EU), according to the latest data from the European Central Bank. This paper focuses on assessing banking loans to non-financial corporations in Romania during the period 2016 – 2025 using standard analytical and econometric tools. In this article, an econometric model is built to identify the relationships between the evolution of banking loans to non-financial corporations (in real terms, after adjusting for inflation) in Romania and several structural indicators (international and domestic). Our estimates indicate a direct relationship between loans to non-financial corporations in Romania and the confidence indicator for the Eurozone industry. On the other hand, we identify an inverse relationship between loans to non-financial corporations in Romania and several indicators, including the short-term real interest rate, the real effective exchange rate of the RON, and US stock market sentiment (as measured by the equity risk premium).

Suggested Citation

  • RĂDULESCU, Andrei, 2026. "Bank Lending To Non-Financial Corporations In Romania During 2016-2025," Studii Financiare (Financial Studies), Centre of Financial and Monetary Research "Victor Slavescu", vol. 30(2), pages 40-51, June.
    • Handle: RePEc:vls:finstu:v:30:y:2026:i:2:p:40-51
    DOI: https://doi.org/10.65672/fs.2026.2.2
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    References listed on IDEAS

    as
    1. Marianne Bertrand & Antoinette Schoar & David Thesmar, 2007. "Banking Deregulation and Industry Structure: Evidence from the French Banking Reforms of 1985," Journal of Finance, American Finance Association, vol. 62(2), pages 597-628, April.
    2. Roi Barrera & Sergio Mayordomo & Irene Roibás & Manuel Ruiz-García, 2022. "Recent developments in lending to non-financial corporations: supply and demand factors," Economic Bulletin, Banco de España, issue 1/2022.
    Full references (including those not matched with items on IDEAS)

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    Keywords

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    JEL classification:

    • C21 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Cross-Sectional Models; Spatial Models; Treatment Effect Models
    • E32 - Macroeconomics and Monetary Economics - - Prices, Business Fluctuations, and Cycles - - - Business Fluctuations; Cycles
    • E44 - Macroeconomics and Monetary Economics - - Money and Interest Rates - - - Financial Markets and the Macroeconomy
    • E51 - Macroeconomics and Monetary Economics - - Monetary Policy, Central Banking, and the Supply of Money and Credit - - - Money Supply; Credit; Money Multipliers
    • G21 - Financial Economics - - Financial Institutions and Services - - - Banks; Other Depository Institutions; Micro Finance Institutions; Mortgages

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