Finances

SITUATION ON NONBANK CREDITING MARKET IMPROVES – NCFM CHAIRMAN

03 may, 2019

In qualitative terms, the situation on the market of nonbank crediting improves, maintains Chairman of the National Commission for Financial Market (NCFM) Valeriu Chitan.

In an interview to the Logos-Press newspaper, he said that the disappearance of the smallest companies from the market had considerable influence neither on the situation on the market, nor on the statistical rates of its condition.

“The process of restructuring the sector is quite expectably accompanied by the decline in the number of market participants. The first 6 months of work in conditions of the new legislation are positively assessed by both market participants and the supervisory organ – NCFM”, Chitan said.

According to him, the NCFM’s next step is organizing of targeted activities on implementing an efficient supervision over the entire sector and each organization in part.

“As a result, we should make sure that all the market participants abide by the prudential rules and standards. This will be a basis for creating proper conditions for population’s access to financial services. We want to achieve a new level of relations between creditors and borrowers. They should be responsible, predictable and transparent”, chairman of the Moldovan capital market regulator said.

According to the NCFM, the current assets of nonbank credit organizations exceeded 7.5 billion lei, which is 38% more than in 2017. The credit and leasing portfolio accounted for 6.4 billion lei (+40%) more than in 2017. The credit portfolio accounted for 6.4 billion lei (+40%). The average sum of credit accounted for 14.2 thousand lei. The net profit for 2018 – 689.3 million lei (+29%), while its own capital reached 2.52 billion lei (+27.9%). The return on equity accounted for around 30%. The number of nonbank crediting market clients in 2018 grew 150 thousand – to 454 thousand legal and physical persons.

As Infotag has already reported, after the concluding of the first stage of restructuring, the nonbank crediting market fell almost one-third. As of April 1, 140 companies had the right to engage in professional nonbank activity on crediting and financial leasing in accordance with the Law on nonbank credit organizations, which entered into force on October 1, 2018. During this period, almost 10 credit organizations voluntarily suspended their activity. At the same time, over 30% microfinancial and leasing companies failed to fulfill new requirements. They did not provide documents for registration in the NCFM register.

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