Domestic credit provided by financial sector (% of GDP)

Field: Finances and financial capital

Details:

Crediting is important in any economic development process. The destination of crediting can be goods and services intended for final consumption or the purchase of capital goods (equipment, machinery, industrial buildings, etc.). Credit conditions, credit costs, credit quality significantly depend on the quality of the credit institutions, competition in the field or the adaptability of monetary policy to the current economic conditions. Crediting has its specific risks, as a rule the risks are assumed contractually by banks and most often banks assume many more risks than debtors in any type of crediting mechanism. The indicator reflects the volume of domestic credit relative to GDP. Romania is at a distance from the European mean: in 2016, EU average was 150% of GDP, the Eurozone average, 154% of GDP, and Romania, 35.7% of GDP (5 times lower). Romania has the lowest domestic credit rate in the region, half that of Poland (73%), Slovakia, Slovenia, Hungary, or the Czech Republic.

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Domestic credit provided by financial sector (% of GDP)

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