NBM RECALLS ITS ADMINISTRATOR FROM MICB

The National Bank of Moldova (NBM) recalled its administrator from the Moldindconbank. Aurel Cincilei, appointed to the MICB in October 2016, will return to his previous post of NBM Vice President.

According to the NBM press service, the recalling of Cinclilei was due to the need to cover all the priorities, established in the NBM strategic plan, which demands complete membership of the bank Executive Committee.

In the press release, the regulator points that the priorities concern the implementation of immediate payments in Moldova and the connecting of the country’s banking system to the Single Euro Payments Area. The strategy also implies the concluding of the stage of introducing the Single Central Securities Depository that concerns the clearing, payment and deposit operations for corporative securities and register operations.

As Infotag has already reported, the NBM introduced external administration in the MICB in late October 2016, appointing Aurel Cincilei as Chairman of the Board in the country’s second largest bank, as well as new members to the Administrative Council. The need of external administration was dictated by the fact that the NBM declared 63.89% of MICB shares as concerted. Owners of this package of shares acted in concert without having regulator’s permit.

Over this time, the package of 63.89% was cancelled by the issuer and an additional issue of shares was made, which is currently put for public sale. For buying these shares, potential investors should get preliminary permit from the NBM.

In these terms, the NBM became a pioneer on the market, undergoing a procedure of canceling and issuing new shares at the demand of the regulator in accordance with the new law on banking activity, which entered into force on January 1, 2018. Before placing the additional issue of shares in the volume of 83.98% in accordance with the law, the bank board established the cost of shares. The bank conducted a tender, selecting an international assessment campaign, which assessed MICB shares at 235 lei per share. This is the price the shares should be put for auction three times. If over this time papers are not sold, the regulator will establish the issuer’s further actions.

The press release says that over two years, Aurel Cincilei took measures for MICB recovery and bank transparency raising.

“Together with members of the board and the bank Administrative Council, he is ensured financial stability and preserved the MICB share on the market, which became an attractive financial institution for strategic investors”, the NBM says.

Functions of the MICB temporary administrator are implemented by Vice President Victor Cibotaru. Administrative Council is ruled by former head of the Supervisory Board and Deputy President of the Stock Exchange in Vilnius, members of the Banking Stakeholder Group (European Banking Authority) Giedrius Steponkus (Lithuania).

“The regime of NBM’s external administration in the Moldindconbank continues in a normal regime. The bank will continue to provide all the services, including those connected with transactions with deposits, crediting and payments”, the NBM press release says.

Infotag’s dossier: According to the “Banks & Finances” Magazine’s analysis, in October 2018 the MICB preserved leadership in the banking system on the following important rates: return on assets (ROA) – 3.30%, return on equity (ROE) – 23.40%. The short-term liquidity rate remains one of the system’s highest – 58.18%. The long-term liquidity is sustainably growing – to 0.74 in October from 0.68 in September. The MICB has 194 offices.