Unlike many Western economies, Romania lacks a standardized credit scoring system, making access to credit more complex for both businesses and consumers. While institutions like Biroul de Credit track repayment history, there is no widely accepted numerical credit score akin to FICO or VantageScore.
Instead, banks rely on factors such as employment contracts, salary history, and banking relationships to assess loan eligibility. This creates an opaque lending environment where many creditworthy individuals struggle to secure financing simply because they lack a long borrowing history. Young professionals and entrepreneurs, in particular, face difficulties, as financial institutions often categorize them as high-risk borrowers despite their financial responsibility.
Without a standardized way to assess creditworthiness (and the countless financial & identity scams running amok in the country), interest rates remain high as lenders seek to mitigate perceived risks, making borrowing more expensive. Additionally, many Romanians turn to informal lending options, such as personal loans from family or high-interest non-bank financial institutions (NBFIs), increasing their exposure to financial instability and corruption.
Businesses also suffer from the absence of a formal credit scoring system. Small and medium-sized enterprises (SMEs) and startups often struggle to secure financing, as banks tend to favor established companies with long financial histories. This limits growth opportunities for newer ventures, stifling entrepreneurship and innovation. The lack of a sophisticated credit rating framework also means that lending is dominated by a few major banks, reducing competition in the financial sector and maintaining higher borrowing costs.
Moreover, businesses that provide credit-based services or payment plans face increased risk, as they have limited tools to assess the financial reliability of clients. This can lead to higher default rates, making companies more hesitant to extend credit, which in turn slows overall economic activity.
Romania could greatly benefit from the implementation of a standardized credit scoring system. A transparent, data-driven framework would improve access to responsible lending, allowing both individuals and businesses to obtain credit more fairly. It would also help lenders more accurately assess financial risk, fostering a more competitive financial landscape with lower borrowing costs.
Combined with better financial education, such a system could enhance economic inclusion and stability, unlocking greater potential for both consumers and businesses. The question remains: should Romania move toward a formalized credit scoring model, or does its existing system offer enough flexibility to serve the economy effectively?