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The Impact of the Economic Crisis on the Consumer Credit Market in Romania

Simona Nicolae ()
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Simona Nicolae: Politehnica University of Bucharest, the Faculty of Entrepreneurship, Business Engineering and Management, Department of Economics

Annals - Economic and Administrative Series -, 2012, vol. 6, issue 1, 57-72

Abstract: The extent of credit market over the last 5 years, with the peak in July 2009, has affected Romania in a manner that has generated major imbalances both at the each individual level and at the macroeconomic level. Doubling the amount of retail credit in lei during the period 2006–2009 and the 5 times increasing the currency loans in the same period of time, had turned the Romanian population into a indebted category that basically has no chance to get over the condition of subsistence. On the other hand, this situation has generated considerable losses for the banking system. The purpose of the paper is to present the main evolutions on the credit market, with a special focus on the evolution of the consumer credit as a consequence of decisions of lending taken by the banks and the Government in a period in which the debt capital became the most accessible. The granting of loans under no minimum prudential rules between 2006 and 2010 has generated the changes of the conditions required by banks in loans agreements through the new rules imposed by the coordinator of the Romanian banking system, National Bank of Romania.

Keywords: credit market; banking system; interest rate; consumer credit; effective annual interest (EAI) (search for similar items in EconPapers)
Date: 2012
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