Moldovan independent analytic centre affirms main financial, prudential indicators of banks confirm sector stability

Chisinau, 30 November /MOLDPRES/ – The main financial and prudential indicators of the banks remained at an adequate level at the end of October 2018, which gives sector stability, according to the Independent Analytical Centre Expert – Grup in the analysis of ranking of the banking performance.

The experts note that the main indicators fall within the limits set by banking legislation with a strong emphasis on the high level of short – term liquidity. Thus, the total own funds ratio remains at an adequate level of 27.7 per cent for the entire banking sector, with individual oscillations ranging 19 – 67 per cent. The limit set by the National Bank of Moldova (BNM) for this indicator is 10 per cent, plus additional capital requirements through capital shock absorbers.

The liquidity of banks remains well above the limits, reaching 55 per cent, which means that more than half of the exposures of banks are liquid assets (state securities, BNM certificates or mandatory reserves), states Expert – Grup. Even so, the banks continue to generate profit, reaching MDL 1.47 billion at the end of October, being negatively influenced by the losses calculated by one bank, BC Eximbank, respectively MDL 88.9 million.

Due to the decrease in the interest rates, the demand for new loans is increasing both by individuals and economic agents, according to the BNM's data. Thus, the total balance of loans extended by banks increased by 5 per cent compared to October 2017 to the value of MDL 34.9 billion. Nevertheless, the lending advance is not provided by the productive sectors of economy, main sectors contributing to real estate and consumer sectors.

Other traditional sectors, such as agriculture, commerce or food industry, are experiencing insignificant increases or even cuts. Finally, specific loan portfolios indicators continue to improve, and provisioning remains appropriate. Thus, the rate of non – performing loans is about 13.3 per cent, oscillating within the range of 06 – 33 per cent depending on the bank.

The performance of the bank at the end of October 2018 was led by three banks with systemic importance for the national banking and financial system – Moldova – Agroindbank, MobiasBanca and Moldindconbank.