NBFIs see loan portfolios down by 720m euros this year
The loan portfolios of leasing and consumer finance companies dropped by over 3bn RON (around 720m euros) this year, to 31,5bn RON in late October, considering new loans did not keep up with repayments, NBR data reveal.
Consumer loan sales have plummeted over the past two years amid
clients' reluctance to take out loans, and in parallel the value of
new funding released by leasing companies has declined four times
in the past two years from the 4bn-euro peak reached in 2007.
In the first nine months of 2010, the value of funding released by
leasing companies came in at 780 euros, down 27% from a year ago,
according to the data provided by the Association of Financial
Companies (ALB).
Moreover, leasing firms repossessed tens of cars and equipment from
bad payers, meaning the respective contracts were closed and are no
longer included in statistical data.
Companies are the main clients of non-bank financial institutions
(NBFI), with the value of funding granted to them topping 28bn RON
in late October, accounting for 90% in the total portfolio.