Last Decade Analysis over the Impact of Loans & Deposits on the Romanian Economy: from Hook to Anchor

Abstract

Traditionally, banking consists in attracting deposits or other repayable funds from the population and in granting loans. This paper aims to analyze the attracted deposits and the loans granted in the Romanian banking system, as well as analyze the evolution of deposits and loans in terms of the interest rate for the whole banking system with the help of the VEC Model for the period 2007-2018. The importance of this work lies in its contribution to understand how the massification of credit facilities designed to finance both private consumption and investment by companies help in the economic recovery.

Keywords

• banking system
• analyze
• deposits
• loans
• vec