BANK LENDING TO NON-FINANCIAL CORPORATIONS IN ROMANIA DURING 2016-2025

Andrei Rădulescu
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Andrei Rădulescu: Institute for World Economy, Romanian Academy, Romania

Studii Financiare (Financial Studies), 2026, vol. 30, issue 2, 40-51

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).

Keywords: non-government loans; Romania; ordinary least squares; real interest rate; risk premium (search for similar items in EconPapers)
JEL-codes: C21 E32 E44 E51 G21 (search for similar items in EconPapers)
Date: 2026
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Persistent link: https://EconPapers.repec.org/RePEc:vls:finstu:v:30:y:2026:i:2:p:40-51

DOI: 10.65672/fs.2026.2.2

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