Non-bank credit market "exploded" in 2018 by 45 percent- increase
13:45 | 18.04.2019 Category: Economic
Chisinau, 18 April /MOLDPRES/- The non-bank credit market recorded an increase of more than 45 percent in 2018, and compared to 2012 it has increased more than four times. It's a record for the past seven years.
According to data for last year, the balance of credits provided by non-bank lending organizations reached almost 6.7 billion lei. Under these conditions, the profit of the market operators had an impressive rise, with over 29 percent.
If in 2011 48 non-bank credit companies were registered, then in 2018 their number reached 199, an increase of more than four times. The relatively tough entry regulations in the banking market make the non-bank credit market attractive enough for those who want to develop a financial business. However, most of the market lies with the top 10 operators, which together hold a share of over 68 percent of total loans, and the top three share about 35 percent.
Impressive developments in the non-bank credit market are explained by several factors, including more rigorous bank lending conditions as a result of the 2014-2015 crisis and the migration of a category of customers to the non-banking market. Also, procedures established by non-bank market operators are simpler and accept categories of clients that are usually not admitted by banks. Expanding collaboration contracts to finance sales of products and services is another factor contributing to market development.
Over the past two years, the number of non-bank lending clients has doubled and has reached almost half a million beneficiaries.
In addition to non-bank lending organizations, 268 (according to data for 2018) of Savings and Loan Associations are operating on the market. In 2018, they offered their members loans of 810 million lei, up by 20 percent compared to 2017.
In 2018, non-bank credit grew much faster than banking. According to the National Bank, last year, the balance of bank loans reached 35.5 billion lei, up 5.9 percent.
Together all these segments show that the credit market in the Republic of Moldova was worth 43 billion lei in 2018. Compared to GDP (190 billion - 2018), the credit market is only 22.6 percent and still has enough room for growth.
