CREDIT GROWTH DETERMINANTS IN ROMANIA

Through an empirical analysis, using a multiple linear regression model, the aim of this paper is to study the effects on credit growth of some of the macroeconomic factors as well as indicators of assets and liabilities of the Romanian banking system. Credit growth is determined by the dependent variable of bank credit to the private sector as percent of GDP. The results showed a direct statistically significant relationship between the dependent variable and factors such as ROE, bank lending-deposit interest rate spread, capital investment, and the indicators of bank assets as percent of GDP and the unemployment rate.