Banks' thirst for RON raises deposit interest rates to almost 11%

Bankers face strong competition on deposits attracted rather than on sale of credits, after the RON excess on the interbank market dried up. Banks paid average interests of almost 11% a year in order to attract deposits for periods longer than a month from the population, show the NBR statistics for July. This is the highest level recorded over the last few years, with interest rates offered by banks significantly exceeding the NBR’s monetary policy rate, of 10.25% a year. In comparison, in July last year, banks paid interest rates of 6.2-7% a year for term deposits, while the NBR’s key interest rate was of 7% a year. Bankers now pay much more for deposits attracted, given that the traditional RON excess on the interbank market has almost dried up. Therefore, in order to continue to grant credits, banks need to attract more RON from clients.