Individuals Are Increasingly Interested in Bank Credit
Automatically translated summary. The full text is available in Romanian.
At the end of August 2019, the main trends in Moldova's banking system are driven by growing demand for loans from individuals. Despite the tightening of monetary policy in recent months, consumer and mortgage lending keep expanding, while businesses grow more cautious amid rising inflation and higher loan rates.
Solvency remains high, ranging from 19% to 59% across banks. Large banks have lower capital but better return on equity (13–23%) than small ones (4–7%). Liquid assets make up about 51% of assets, against 45% for loans. The non-performing loan ratio is about 10.8%, ranging from 5% to 26% by bank.
In the first eight months of 2019 banks earned MDL 1.6 billion, about MDL 400 million more than a year earlier. The loan stock reached about MDL 39.4 billion, up 16% year on year: lending to individuals rose 41%, while lending to businesses grew only 7%. The top-ranked banks are Moldova-Agroindbank, Moldindconbank, MobiasBanca and Victoriabank, which hold about 86% of sector profit and 79% of assets.
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