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The financial behavior of the banking services’ consumers regarding the
credit- contracting for the crisis-period in Romania
Laura Olteanu, Universitatea Babes-Bolyai, Cluj-Napoca, Romania
Izabella Krajnik, Universitatea Babes-Bolyai, Cluj-Napoca, Romania
Abstract
The knowledge of costumer behavior can be interpreted as a provocation in the current economical
conditions, however in conditions of crisis it becomes of vital importance. Consumer behavior is
influenced by a series of factors. In the present conditions of economic-crisis, the consumers’ financial
behavior regarding the banking services is strongly influenced by the economic environment. The
psychological factor makes itself known, and consumers become more attentive with their financial
resources, those owned or attracted.
Keywords
credits, overdue debts, credits in RON and currency, tendency, crisis-periods, influential factors, cash
JEL Codes: M 31
In an economic market the banking system fulfills the functions to attract and that of the
concentration of the society’s economies and its channelization, through an objective and
impartial processing of allocation of credits, towards the most efficient investments
available.
In the fulfillment of these functions, the banks, by providing the basic links of the system,
pursue the methods in which the debtors manage their credited resources. Banks assure and
facilitate the effectuation of those payments, offer their risk-management services and
represent the main channel of transmission in the implementation of monetary policies. By
means of the acquisition of financial resources, simultaneously with their placement on the
market by means of credits, the operations’ discount and that of other opportunities on the
financial market, banks play the role of intermediate agents between stockholders and its
users. By prosecuting this diversity of operations, banks operate in their name, on their own,
the debtors and creditors having none of those related rights among them. Banks manage
deposits and the resources of payment from the economy; collecting deposits, banks have the
responsibility of their efficient management with a maximum of efficaciousness, in their own
benefit and that of the depositors.
In present, banks offer a wide range of financial services. Banking activities are based on two
main aspects, that of attracting resources from the exterior/outside or on the other hand,
offering financial resources. The price that the bank is paying to attract resources must be
less than the price of the financial resources on-offer. In this sense the rate of interest for the
filing of deposits gets lower than the rate of interest levied by the bank for the credits.
The financial behavior of the banking services’ consumers regarding the credits’ contracted
for the crisis-period in Romania, offers an image of the dynamics of credits in RON and
other currencies contracted by the population, but also by the economic agents in the period
of 2007-2009. Moreover it accentuates the modifications, which occurred in regards of
current credits and back interests, and also for those types of credit that were contracted by
Studies and Scientific Researches - Economic Edition, no. 15, 2010
421
individuals and legal entities. The final conclusions obtained from the analysis are the results
of a desk research.
Credits are negotiable banking instruments.1 Banks lend for their clients sums of money for
the financing of their businesses.2
Banks offer credits for individuals, but also for legal entities. Credits offered for individuals
can have a great variety of application. To procure a loan, the solicitant has to file an
application for credit. The creditor, according to the interests and possibilities, can reject the
application for credit or gets on with the evaluation of the potential client.
The main provisions regarding the specifics of a credit’s contract are: destination of the
credit, the volume of the credit, the period of lending, the form of credit, rates and costs, the
coverage for resources, time limits, indemnification, other elements (provisions). All of the
above mentioned elements are enclosed within a contract. For individuals, banks offer credits
for diverse applications:
- Credits for vacation
- Land purchase
- Real estate purchase, vacation homes
- Purchase of durable goods
- Auto vehicle purchase
- Other destinations
Credits can be lent in RON and other currencies. Banks lend credits due to the fact that these
represent the main source of income. In this sense banks are interested in offering credits, but
have to take a strict evidence of their baleful clients.
Table no. 1 The evolution of current credits and overdue debts in RON for the period of
2007-2009
RON Dec 2007 Dec 2008 Dec 2009
Credits RON 67 800 198 434,77 83 746 142 914,49 79 787 539 998,27
current 67 038 054 772,55 81 934 048 636,53 75 444 725 505,52
overdue debts 762 143 665,36 1 812 094 278,14 4 342 814 491,41
Source – www.bnr.ro
Credits in RON registered an increase for the analyzed period, from 67 800 198 434,77 RON
in 2007 to 79 787 539 998, 27 RON in 2009, representing an increase of 17,68% in 2009 in
regard to 2007. Within the precincts of credits in RON it can be observed that although
current credits/loans have registered an increase for the entire period, as a ponderosity in
total of credits in RON calculated for each year registered a decrease of those in company
with default credits of which ponderosity has registered meaningful increases. Thereby
overdue debts registered in 2007 a ponderosity of 1,12 % of total of credits in RON, in 2008
this ponderosity has increased to 2,16%, as in 2009 to 5, 44%.
1 Dardac Nicolae, Basno Cezar, Operaţiuni bancare. Operaţiuni şi tehnici de plată, 1996, Editura
Didactică şi pedagogică, Bucureşti, pg. 140
2 Ionescu Lucian (coordonator), Fundamentele profesiunii bancare. Băncile şi operaţiunile bancare,
1996, Ed. Economică, Bucureşti, pg. 210
Studies and Scientific Researches - Economic Edition, no. 15, 2010
422
Graphic no. 1
Source – www.bnr.ro
It can be found that at the end of year 2008, the value of contracted credits has been bigger
than at the end of year 2009, but concerning the analyzed period, increases can be
highlighted for all analyzed categories of credits. Regarding the ponderosity of credits lent
for every year in part, on total value of credits, individuals have moderated their upsurge to
credit contracts. As in 2007 individual consumers held 49,52 % from the total of loans
credited, in 2009 the value of those was reduced to 48,65 %. For the analyzed period, the
value of credits contracted by individuals registered an increase of 15,61%, and the value of
contracted credits by legal entities registered an increase of 20,35 %.
Table no. 2 The evolution of credits lent in RON for the period of 2007-2009
RON Dec 2007 Dec 2008 Dec 2009
Credits in RON 67 800 198 434,77 83 746 142 914,49 79 787 539 998,27
economic agents 32 597 434 201,35 40 967 023 648,72 39 232 528 620,79
population, of which: 33 573 657 459,45 40 940 105 712,03 38 815 780 449,48
consumer 31 283 859 162,54 37 897 327 162,23 36 046 162 271,55
real estates 1 463 981 011,30 1 647 989 725,66 1 705 225 222,04
other applications 326 413 007,50 684 646 905,73 383 503 216,49
other 1 629 106 774,39 1 839 013 551,75 1 739 230 927,28
Source – www.bnr.ro
Analyzing the situation for credits lent to the population it can be determined that individuals
have been inclined especially towards consumer credits and have been less interested of
those destined for purchasing real estates. Though consumer credits detain out of the total
credits lent to the population over 90% in each year from the analyzed period, as for the
credits for real estate purchases is situated below 5%, consumer credits lent in RON to
individuals have registered an increase of 15,22% for the analyzed period, while those
destined for real estates registered an increase of 16,47%.
Table no. 3 The evolution of credits lent in RON for the period of 2007-2009 %
RON Dec 2007 Dec 2008 Dec 2009
Credits in RON 100 100 100
economic agents 48,08 48,92 49,17
population, of which: 49,52 48,88 48,65
98,86
1,12
97,83
2,16
94,55
5,44
0
20
40
60
80
100
2007 2008 2009
The evolution of current credits and overdue debts in RON for the period
of 2007-2009
current
overdue
Studies and Scientific Researches - Economic Edition, no. 15, 2010
423
consumer 93,18 92,57 92,86
real estates 4,36 4,02 4,39
other applications 0,97 1,67 0,99
other 2,40 2,19 2,18
Graphic no. 2
Source – www.bnr.ro
Granted credits in currencies have registered bigger values as those in RON, which reflects
the consumers’ preference toward other monetary units over that of the national ones.
Credits granted in RON have registered bigger values at the end of year 2008, and in 2009
although their value had a decreasing tendency; it was situated above the registered value at
the end of year 2007. Credits in currencies have registered an increasing tendency for the
analyzed period, thereby in 2009 they registered an increase of 49,06 % in 2009 in regard to
2007 and an increase of 5,26 % in regard to 2008. It can be observed that the rate-of-rise was
a lot bigger in 2008 in regard to 2007, of 43,80 %, than in the second part of the analyzed
period.
As for the default credits in other currencies it can be said that as ponderosity they have
increased in every year analyzed. If in 2007 they detained a ponderosity of 0,40% of total
credits in other currencies, in 2009 this ponderosity has increased to 2,86%.
Table no. 4. The evolution of current credits and overdue debts in currency for the
period of 2007-2009
RON Dec 2007 Dec 2008 Dec 2009
Credits in currency 81 461 466 302,82 115 360 662 075,02 121 423 852 981,49
current 81 131 240 341,80 114 372 241 380,10 117 949 550 392,62
Overdue debts 330 225 957,95 988 420 694,74 3 474 302 588,66
Source – www.bnr.ro
Regarding the evolution in the analyzed period, the increase is extremely high, therefore
overdue debts in other currencies have increased from 330 225957,95 in 2007, to 3 474 302
588,66 in 2009. The rate-of-rise for the overdue debts values has been bigger in 2009 in
regard to 2008, compared to the previous period.
0
10
20
30
40
50
60
70
80
90
100
2007 2008 2009
The structure of credits in RON for the
population in the period of 2007-2009
Population, of which:
consumer
real estate
other applications
Studies and Scientific Researches - Economic Edition, no. 15, 2010
424
Table no. 5 The evolution of current credits and overdue debts in currency for the
period of 2007-2009 %
RON Dec 2007 Dec 2008 Dec 2009
Credits in currency 100 100 100
current 99,59 99,14 97,13
Overdue debts 0,40 0,85 2,86
Credits granted in currency have registered an increase for the analyzed period not only for
individuals, but also for legal entities. The rate-of-rise has been bigger in the first part of the
period, therefore credits destined for legal entities have registered an increase of 32,73 % in
2008 in regard to 2007, and an increase of 6,64% in 2009 in regard to 2008. Regarding
individuals the tendency has remained the same, thus in 2008 in regard to 2007 the growth
has been of 53,64%, and in 2009 in regard to 2008 the growth has been of 5,37%.
Table no. 6 The evolution of credits in currency for the period of 2007-2009
RON Dec 2007 Dec 2008 Dec 2009
Credits in currency 81 461 466 302,82 115 360 662 075,02 121 423 852 981,49
Economic agents 40 777 915 333,56 54 127 863 274,08 57 725 183 378,23
Population, of which: 38 126 333 332,95 58 577 508 116,30 61 725 254 654,47
consumer 23 955 156 808,80 35 977 804 517,76 36 977 831 260,92
real estate 12 782 621 978,92 19 342 714 838,70 22 622 922 261,30
other applications 1 191 104 854,94 2 892 165 660,09 1 724 791 352,91
Source – www.bnr.ro
Concerning the ponderosity for different types of credits granted in currency for every year
in part, consumer credits detain the highest ponderosity, being followed closely by credits for
real estate purchases. Compared to the credits granted in RON, the population opted mostly
toward the credits in currency destined for the real estate purchases.
Table no. 7 The evolution of credits in currency for the period of 2007-2009
%
RON Dec 2007 Dec 2008 Dec 2009
Credits in currency
population, of which:
100 100 100
consumer 62,83 61,42 59,90
real estate 33,52 33,02 36,65
other applications 3,13 4,93 2,80
For the analyzed period the value of credits in currency granted for real estate purchases have
registered an increase for the entire analyzed period.
The financial behavior of the banking services’ consumers regarding the contracting of
credits for the analyzed period has been influenced, for the most part, by external factors of
the consumer, factors that have originated from the environment in which he/she lives and
proceeds with his/hers daily activities. Thus the economic environment of the country, being
influenced by the international environment has had a powerful impact over the consumers.
Studies and Scientific Researches - Economic Edition, no. 15, 2010
425
Graphic no. 3
Source – www.bnr.ro
The consumer’s behavior for banking services is influenced by a series of factors such as
cultural factors, social factors, and personal factors, psychological and economical factors.
The culture represents the assembly of standards, beliefs and values, of the collective
representations of the majority of subjects from a group. The cultural factors can be
associated to language, morals, ethics, traditions, personal values, beliefs.3 These factors
influence the individuals still from their childhood, through family and through the way it
develops. Therefore it can be appreciated that in fact that culture is deeply ingrained in the
human behavior. Its modification requires a longer time, a reason for which, from
marketing’s point of view, it is beneficial to be working considering it how it is, without
trying to modify it.
Social factors have influence over the consumers’ behavior within the buying and
consuming process, reference groups of the client, social classes. The most powerful factor
of influence is family. The role of the family is defined as being various throughout the
world, and the marketing operators must determine the characteristics of the particular
markets.4
The attitude for saving has to be cultivated from childhood, hence in the family. Banks
approach the youth through specific offers, which can attract and make them faithful clients.
Thus they can offer a series of banking products and services specific for different segments
of consumers. From marketing’s point of view, the notion of social classes leads to a
segmentation of the market, which offers an operational potential. Social classes are
determined in general by the origin, family conditions, occupation, and source of income,
home and type of home, education and educational level.5 The analysis of the utilization of
banking products and services can be made on segments of consumers dependent on the
occupation, education, life style, etc.
The consumer’s behavior is also influenced by personal factors such as: age, life-cycle
stage, lifestyle, personality, and auto-concept. On different ages and stages of the life-cycle,
people have different needs. Over the lifetime of an individual, his/her needs are
continuously modified. A young person is interested in style, traveling, entertainment; he/she
3 Olteanu Laura,Serviciile în România şi comportamentul consumatorului de servicii bancare-persoană
fizică, 2007, Risoprint, Cluj Napoca, pg. 102
4 Dubois Pierre Louis, Jolibert Alain, Marketing. Teorie şi prectică,vol. I, 1989, ed. Economică,
Imprimeria Ardealul Cluj, Cluj Napoca,pg.97
5 Dumitru D. Lazar, Marketing pentru studenţi, 1998, Ed. Continental, Alba Iulia, pg. 50
0
20
40
60
80
100
2007 2008 2009
The structure of credits in currency for the population for the period of 2007-
2009
Credits in currency
Population, of which:
consumer
real estate
other applications
Studies and Scientific Researches - Economic Edition, no. 15, 2010
426
isn’t inclined to saving money; an elder person, that doesn’t spend much on clothes, prefers
to deposit its money for safekeeping.
Age. Age-groups represent, for the marketing operators, distinct life-segments that are
accosted with different policies and strategies.6
Another factor of influence of the consumer’s behavior is its occupation. Through its
occupation the individual integrates itself in a group, that being a primary or secondary
group; concurrently it belongs to a social class of which characteristics imprint particular
features into their behavior.
Occupation. In terms of occupation, the individual has or hasn’t got free time. Consumers
are strongly influenced by their rate of incomes, in the buying process, that they dispose of.
The existence of the requisition is conditioned by the existence of needs, buying capacity and
the possibility of choice. The absence of one of these elements deters the manifestation of
proper requisition.7
Practice has demonstrated that the rate of income is inter-conditioned with the occupation,
the individual’s free time, and with the lifestyle.
A need satisfied, generates new needs. The increase of the rate of income determines the
satisfaction of a new need, unsatisfied due to the absence of certain financial availabilities.
Moreover the increase of incomes determines a change of the lifestyle embodied by different
solicitations and different consumes. We can determine the consumer’s change in orientation
from quantity to quality.8
The attitude towards savings alters; if, at small sums the detainer isn’t tempted to deposit at
banks, in the situation of the increase of financial availabilities it will be tempted to make
savings through deposits in RON and other currencies and also to purchase other banking
products.9
Within the factors that have influence over the consumer’s behavior there also can be
distinguished psychological factors. Those are perception, motivation, learning, attitude,
appreciation and opinion 10.
The multitude of factors that influence the consumer’s behavior must be taken in account
within an expertise/analysis.
In case of a crisis-period the consumers react in different ways. The attitude, the experience,
the education, the rate of income, social classes, the perception, the attitude toward risks
conditions the consumer’s behavior referring to credits that can be contracted.
Bibliography
1. Dardac Nicolae, Basno Cezar,(1996), Operaţiuni bancare. Operaţiuni şi tehnici de plată, Ed.
Didactică şi pedagogică, Bucureşti
2. Dubois Pierre Louis, Jolibert Alain,(1989,) Marketing. Teorie şi prectică, vol. I, Ed. Economică,
Imprimeria Ardealul Cluj, Cluj Napoca
3. Dumitru D. Lazar,( 1998), Marketing pentru studenţi, Ed. Continental, Alba Iulia
4. Ionescu Lucian (coordonator),(1996), Fundamentele profesiunii bancare. Băncile şi operaţiunile
bancare, Ed. Economică, Bucureşti
5. Olteanu Laura, Fazakas Jozsef,(2005) Interdependenţa dintre comportamentul consumatorului şi
valoare de întrebuinţare a mărfii, Presa Universitară Clujană, Cluj Napoca
6 Olteanu Laura, Fazakas Jozsef, Interdependenţa dintre comportamentul consumatorului şi valoare de
întrebuinţare a mărfii, 2005, Presa Universitară Clujană, Cluj Napoca, pg.35
7 Olteanu Laura, Bazele marketingului, 2009, Risoprint, Cluj Napoca, pg. 112
8 Olteanu Laura,Serviciile în România şi comportamentul consumatorului de servicii bancare-persoană
fizică, 2007, Risoprint, Cluj Napoca, pg. 111
9 Olteanu Laura, Fazakas Jozsef, Interdependenţa dintre comportamentul consumatorului şi valoare de
întrebuinţare a mărfii, 2005, Presa Universitară Clujană, Cluj Napoca, pg.38
10 Olteanu Laura, Bazele marketingului, 2009, Risoprint, Cluj Napoca, pg. 113
Studies and Scientific Researches - Economic Edition, no. 15, 2010
427
6. Olteanu Laura,( 2009), Bazele marketingului, Risoprint, Cluj Napoca
7. Olteanu Laura,(2007), Serviciile în România şi comportamentul consumatorului de servicii
bancare-persoană fizică, Risoprint, Cluj Napoca
8. www.bnr.ro
Studies and Scientific Researches - Economic Edition, no. 15, 2010
428