Banks are generating greater profits, yet Romanians are encountering greater difficulties in accessing financial services. The Foundation For The Defense Of Citizens Against State Abuses (FACIAS) has urged Romanian state institutions to implement more rigorous regulatory measures for the banking sector.
FACIAS has urged the Romanian government to implement urgent regulatory measures to strengthen the oversight of banking activities, citing the necessity of such measures in the current economic context. The cost of food in Romania is comparable to that of other European countries, yet the average income of Romanians is approximately half that of their European counterparts. Over the past three years, the cost of a consumer basket required to maintain a basic standard of living has risen by 40%. A family comprising two adults requires a monthly income of 9,978 lei to meet their basic needs.
According to data from the National Institute of Statistics, the annual inflation rate in March was 6.6%, with food prices rising by almost 5%. The price of meat, cheese, detergents and medicines has risen, placing a significant financial burden on a large number of citizens.
Banks getting richer, Romanians getting poorer
Concurrently, the profitability of banks has increased exponentially. For example, while lending increased by 7%, bank profits increased by up to 50%, which is well above the modest 2% growth in national GDP in 2023. This discrepancy indicates that bank profits are being propped up by lending policies that charge borrowers disproportionately high interest rates in comparison to those offered on deposits. Conversely, data from the National Institute of Statistics reveal a stark reality: one in five Romanians now lives below the poverty line. This equates to approximately 4 million individuals. This situation demonstrates a significant failure on the part of the Romanian state to ensure a decent standard of living for its citizens, despite the provisions of the Romanian Constitution. The necessity for FACIAS's proposal to regulate the banking sector more strictly thus becomes not only a necessity, but a moral and legal obligation to correct these social imbalances.
In light of the aforementioned circumstances, FACIAS has formally requested that the Romanian Government take immediate action. It is imperative that state representatives take concrete action to improve the challenging economic circumstances currently faced by millions of Romanians.