Volume of loans granted by NBFIs, down by 600m euros in H1

Non-bank financial institutions (NBFI) have frozen funding this year, with sums paid back topping the new money lent mainly to individuals and services companies, show NBR data.
The loan portfolios of NBFIs registered in the special registry of the NBR shrank by 600m euros or 7.5% in the first six months, reaching 7.4bn euros (the equivalent of 32.3bn RON) in late June.
The registry includes NBFIs with a minimum loan volume of 25m RON and equity capitals and borrowed sums of at least 50m RON.
"I do not believe the sliding lending activity is related to the cost of loans, but rather to the shortage of demand. The indebtedness level of clients targeted by such loans is very high, with the growth potential being particularly limited on the segment of individuals," comments Felix Daniliuc, general manager of Raiffeisen Leasing.
NBFIs halted funding to almost all sectors, except agriculture and public administration.
While the volume of loans granted by NBFIs dropped, portfolio quality continued to worsen, so that overdue sums climbed by almost 50m euros, to 343m euros (1.5bn RON).