Expert-Grup analytical centre says private persons more and more interested in bank loans in Moldova

Chisinau, 26 September /MOLDPRES/ - The main tendencies in the banking system in last August were triggered by the increasing demand in loans on behalf of private people, according to an analysis on the banking performance ranking, launched by the Expert-Grup Independent Analytical Centre today.     

The analysis’ author, Dumitru Pintea, said that, despite the harshening of the monetary policy in the last months, this segment of clients continues extending on the two principal components: consumer loans and real estate loans. On the other hand, economic agents become more cautious with the boosting of the inflationist tendencies and increase in the interest rates on credits.   

The crediting advances stronger backed by private people. As a result, in late last August, the overall balance of credits recorded a value of about 39.4 billion lei, up by 16 per cent against the same month of the year before. The increase in the stock of loans is due to the private people who continue taking both mortgage credits and consumer ones (+41 per cent). The pace of crediting of economic agents slowed down a bit (+7 per cent), amid a weak investment appetite and the growing of   interests.

The volume of own funds maintains the solvency index on the banking system at a higher level, with oscillations from one bank to another in the interval of 19-59 per cent. For the big banks, the capital level is lower, while for the small ones, the situation is opposite. This fact determines also a low level of banks’ efficiency; the big banks have a better profitableness of the capital (13-23 per cent), while the small ones have a poorer profitableness (4-7 per cent), the expert said.    

The liquidity indexes have a comfortable short-term position and a less comfortable one for the long term. About 51 per cent of the assets are represented by liquid assets (state securities, compulsory reserves, BNM certificates), while loans account for only 45 per cent. On the other hand, the long-term liquidity tends to improve; yet, it remains at a low level for more banks.  

The stock of bad credits remains at a relatively low level, amid the speeding up of the crediting activity. At the general level, the rate of bad credits registered a level of about 10.8 per cent, with oscillations between 5 and 26 per cent, depending on the bank. At the same time, the volume of own funds remains solid enough to cover eventual unforeseen shocks, Expert-Grup also said.  

All banks continue accumulating profit. Thus, in the first eight months of 2019, in the banking system, the banks register a profit amounting to 1.6 billion lei in all, by about 400 million lei more against the same period of the year before.  

In the bank performance ranking, on the first positions, there are banks of systemic importance with solid results for most financial indexes, respectively the Commercial Bank Moldova-Agroindbank, followed by Commercial Bank Moldindconbank, Commercial Bank MobiasBanca and Commercial Bank Victoriabank. The first four banks excel in terms of profitableness and market indexes (they have about 86 per cent of the profit gained in the sector and 79 per cent of all bank assets).