Are Banks Ready for a Tightening of Monetary Policy?
Automatically translated summary. The full text is available in Romanian.
At the end of May 2019, Moldova's banking sector kept its key indicators, including liquidity and solvency, at adequate levels. Banks remain profitable and well capitalised, with enough resources to support lending, although credit growth may slow after the National Bank of Moldova's latest monetary policy decision.
Solvency ranges from 20% to 68% across banks. Liquid assets account for about 53% of total assets and loans for 44%, so short-term liquidity is comfortable, while long-term liquidity is less so. The non-performing loan ratio is around 10.9%, ranging from 5% to 26% by bank. In the first five months of 2019, banks earned a profit of MDL 901 million, about MDL 165 million more than a year earlier.
The total loan stock reached about MDL 37.9 billion, up roughly 16% year on year. Lending to households grew by 39% and to legal entities by 8%. The National Bank plans to raise the base rate to 7% and to adjust by 3 p.p. the reserve requirement on foreign-currency funds. In the performance ranking, Moldova-Agroindbank leads, followed by MobiasBanca, Moldindconbank and ProCredit Bank. The first three hold about 75% of sector profit and 62% of assets.
Recent publications from Financial sector
See all
Monitoring Report on the Implementation of the State Property Management Strategy for State-Owned Enterprises and Companies with Fully or Majority State Capital
Position Paper. The Involution of the Budget Process in the Republic of Moldova
Position Paper “Government Factoring – a Solution for Reviving Moldova’s Agricultural Sector”
