Romanian companies take out the fewest loans, but are among the most indebted

Romania ranks last in the European Union in terms of financial intermediation, a situation that has persisted for approximately 30 years, since the reconstruction of the modern banking system. Credit to the private sector accounts for just 40% of GDP, compared with a European average of 106%, according to an analysis conducted by BNR Deputy Governor Cosmin Marinescu.

Paradoxically, Romanian companies are among the most indebted in Europe, despite making limited use of banks. One-third of corporate financing comes from intra-group loans and trade credit, while loans provided by domestic banks and non-bank financial institutions account for less than one-tenth. The situation is explained by the preference for alternative sources, financing costs and the low level of capitalization: for one-third of companies, net assets amount to less than half of the subscribed share capital.

Marinescu warns that the state’s increasingly large borrowings are intensifying the “crowding out” effect, whereby public financing limits the private sector’s access to funds. In the first quarter of 2026, banks held approximately 230 billion lei in government securities, three times more than ten years earlier. At the same time, the loan-to-deposit ratio fell from 86% in 2015 to 67% in March 2026.

The deputy governor argues that reviving lending depends on companies’ capitalization, viable investment projects, a banking sector focused on the economy and the reduction of budgetary imbalances.%22,