The value of bank deposits has increased 3.2% in the second quarter of 2011

The value of bank deposits has reached 292.9 billion lei in Q2 2011, a 3.2% increase over Q1 2011, according to data published by the Fund for the Guarantee of Deposits in the Banking System (FGDB).

In nominal terms, compared to Q1 2010, deposits have increased 2.9%.

The total value of bank deposits opened with lenders which are members of the FGDB was 272.4 billion lei in Q2. The FGDB has guaranteed 49.2% of this amount.

"The total value of deposits opened with the Romanian branches of foreign banks stagnated in the second quarter of 2011, due to the opposite evolution of the deposits opened by individuals and by companies", according to data by the FGDB.

Total deposits in lei of the banking system, have increased faster than those denominated in foreign currencies, having grown four times faster compared to those denominated in foreign currencies.

This occurred even though the average interest rate for deposits denominated in lei fell, which shows that depositors values safety more than returns, according to data by the FGDB.

Companies were the main factor behind the increase in the deposits in lei of the banking system, with a quarterly increase of 6.1 billion lei, as opposed to 1.2 billion lei for deposits of individuals. On the other hand, the deposits of individuals grew twice as much as those of companies (1.2 billion lei compared to 600 million lei).

• Deposits of the population increased to 108.5 billion lei

The value of the deposits of the population with lenders increased to 108.5 billion lei in Q2 2011, by 2.3% in nominal terms, compared to Q1 2011, and by 3% compared to Q2 2010.

The value of the population"s deposits in lei climbed to 65.6 billion lei in Q2 2011, up 1.9% Q/Q. Deposits in foreign currencies increased faster (2.9%) than those denominated in lei, between April and June.

"This happened due to the depreciation of the Romanian currency against the Euro in Q2 2011, as most of the deposits of the population denominated in foreign currencies are held in Euros", according to data from the Fund for the Guarantee of Banking Deposits.

• Deposits of companies increased to advanced to 184.4 billion lei

Deposits of companies with Romanian lenders reached 184.4 billion lei in Q2, up 3.8% (in nominal terms) over the previous quarter.

"The determining factor behind this evolution was the dynamic of the unguaranteed deposits of corporations with the banks which are members of the Guarantee fund, which increased by about 5.5 billion lei, to 138.2 billion lei on June 30, 2011", according to data from the Fund.

The value of the deposits of companies opened with the domestic branches of foreign banks fell by about 300 million Euros, Q/Q.

The value of deposits in lei of the legal persons increased 7.2% in Q2 over Q1, whereas the value of deposits denominated in foreign currencies increased only 0.6% Q/Q.