Expert-Grup centre of Moldova says financial results reported by banks show stable situation for most banking sector

Chisinau, 25 March /MOLDPRES/ - The main financial and prudential indicators in late last February were recording values ranging within the limits or even over the limits allowed by the central bank, which determines a comfortable situation for the moment. The banking sector continues to be profitable, well-capitalized and with a high degree of liquidity for short term, the Expert-Grup Independent Analytical Centre has said in an analysis on the ranking of banking performance, made public today.      

Experts said that most banks remained to be well-capitalized, which maintains the solvency degree at a high level, with oscillations from one bank to another, in the interval 19-61 per cent. Nevertheless, the basic component “is represented by the reserves accumulated and the profit reported, the volume of which can change significantly following the providing of dividends to stockholders.”   

The liquidity in the banking sector continues to be in excess, but this is mostly for short term. This situation is triggered by the banks’ financing structure, which is based on short-term deposits and which hardly can support the crediting activity, the Expert-Grup’s analysis shows. Thus, more than a half of the banks’ investments continue to be represented by low-risk assets – VMS or sterilization instruments of the central bank. On the other hand, the long-term liquidity is not equally comfortable, taking into account that, for more banks, the concerned indicator is close to the limit imposed.      

According to Expert-Grup, the assets’ quality indicators continue to improve, against a background of cut in the volume of bad credits and increase in the volume of newly provided loans. The rate of bad credits records a level of about 12 per cent, with oscillations between 5 and 30 per cent, depending on the bank. At the same time, for the moment, the volume of own funds remains insufficient for covering eventual unforeseen shocks.    

The banking intermediation continues registering paces of growth based on the demand of credits on behalf of private people. The increase in the monthly financing provided for purchasing/construction of real estate or for consumption leads to an increase in the overall balance of credits. In late last February, the overall balance was recording a 1.4-per cent increase against January 2018 and was by 11.3 per cent more against February last year. At the same time, the consumer loans and real estate ones increased by 25 per cent and, respectively, 56 per cent, against February 2018. The financing provided in the national currency tends to strengthen, reaching a share of 62.5 per cent, followed by the one in euros, with a share of about 25.5 per cent, experts also said.      

The bank performance ranking in last February 2019 continued to be led by banks of importance for the national banking and financial system, and namely: Moldova-Agroindbank, followed by MobiasBanca and Moldindconbank. These banks preponderantly excel in terms of profitability and market indexes; they have about 67 per cent of the profit gained in the sector and 62 per cent of all bank assets.