NONBANK CREDIT ORGANIZATIONS ACHIEVE ASSETS TOTALING US$385 MILLION

The volume of assets in non-bank credit organizations of Moldova reached 6.5 billion lei, annually growing by 25% on average.

According to the National Commission for Financial Market (NCFM), the quality growth of companies who are working in the segment of non-bank crediting, was on average of 16% per year.

"According to the latest NCFM data, currently in Moldova there are 183 registered nonbank crediting organizations. Moreover, 85% of the market accounts for 15 of them", said the NCFM representative.

Talking about the growth rates in this segment on the Moldova's financial market, first of all about the size of assets, administrated by nonbank credit organizations, the commission says that in 2012 there were 73 organizations with assets worth 1.77 billion lei in Moldova.

"As of the results of 2017, their number reached 167 with the total volume of assets of 5.8 billion lei", said the NCFM representative.

The analysis of the nonbank credit organizations' activity demonstrates that they are mostly crediting physical persons and their credit portfolio in this field accounts for 4.5 billion lei.

"The portfolio of loans to legal persons is slightly more than 1 billion lei", says the NCFM special research.

As Infotag has already reported, the new law the NCFM is driven by in the soft regulation of the nonbank credit organizations' activities entered into force on October 1, 2018. The law strictly prohibits the nonbank organizations to attract money from the population, permitting only investments from physical persons worth not less than 500 thousand lei. Organizations also can build up their assets also by means of attracting resources from nonresidents of Moldova and their founders. The NCFM data demonstrate that 53% of resources the nonbank credit organizations account for nonresidents. Commercial banks are the second in terms of attracting money with a share of 21%, while 11% of the resource basis account for investors-physical persons.