Banking sector's contribution to the economy in the last 30 years amounts to twice Romania's 2020 GDP

During 1990-2020,  the Romanian banking sector’s economic impact is estimated to stand at 2,247 billion lei, according to the survey ″The contribution of the banking sector to the  economy in the last 30 years″, drawn up by KPMG Advisory, upon the request of the Romanian
The contribution of the financial intermediation sector in Romania can be directly quantified as this sector’s weight against the GDP. Function of a specific year, the financial intermediation sector has contributed directly by 2.5% - 3.5% against the GDP. During 1990-2020, the direct contribution to the production of goods and services stood at 1,546 billion lei.
The activity of the financial intermediation sector in Romania has lead, among others, to an addition effect of 10% upon Romania’s economy, in an indirect manner, we should mention. This effect was generated following the growth of the intermediary or indirect consumption of goods and services on the Romanian market, as the result of financial intermediation. Generally speaking, financial intermediation represents an incentive for Romania’s economic activity, due to the growth of the consumption of goods and services generated by lending. The total (direct, indirect and induced) economic impact amounts to 1.26 of the revenues which are the banking sector’s contribution to the GDP.
The total value of the new loans granted during 2007-2020, in conformity with the NBR data, amounted to 1,013 billion lei representing a weight of 96% against the 2020 GDP. This amount is 3.6 times higher than the non-government credit balance in 2020.
Contemplating the impact upon the remuneration of employees and upon households’ consumption at the end of 2020, the financial intermediation sector of Romania had 52,650 employees. As a direct impact, the remuneration of the financial intermediation sector’s employees totalised 131 billion lei during 1990-2020.
The indirect impact upon the employees’ remuneration in Romania shows an addition effect of  9% against the total value of the sector’s remuneration. The consumption of the sectors’ employees  has generated this effect as additional demand for products and services, alongside job creation in other industries, indirectly that is. A significant share of the remuneration of the financial intermediation sector’s employees returns to the economy as household consumption. For Romania, during 1990-2020, this induced effect lead to a 13% increase in the Romanian household consumption.
Besides the direct, indirect and induced impact upon the production of goods and services  brought about by the financial intermediation system, this sector has contributed to the development of the Romanian society via social initiatives rolled out in comprehensive CSR programmes, the training of own employees and of the society as well as via the introduction of  instruments and support granted for digital initiatives which have all led to the modernization of our society and its aligning to European standards, mentions the KPMG Advisory survey.