BANK ACTIVITY RESULTS PROVE STABILITY IN THE SECTOR – EXPERT-GRUP

The rates of the banking activity in Moldova demonstrate stability in this sector, says the analysis of relevant data as of late April, published by the independent analytical center Expert-Grup on Thursday.

Analysts say that the main financial and prudential indexes register rates within the frameworks or even higher than those adopted by the National Bank of Moldova (NBM), which proves a convenient state of things at present moment. The banking sector is still profitable, sufficiently capitalized and with a high level of liquidity in short-term perspective. Besides, the bank crediting keeps growing, while the volumes of inefficient credits are falling in moderate pace.

The level of equity registers adequate rates, which supports the rate of ability to pay at a higher level with fluctuations within the range of 18-71%. However, the basic component of the capital is the accrued reserves and the non-distributed profit from previous periods, whose volume may change in case of paying dividends to shareholders.

Indicators of liquidity have a convenient short-term position and a less convenient – in short-term perspective. In short-term perspective, there is an excess of resources: around 53% of assets account for liquid assets and only 43% - for credits.

The amount of credits keeps improving, as the volume of nonperforming credits is falling, while the volume of new loans – is growing. The level of nonperforming credits accounts for around 10.9% with fluctuations within 5% to 25% depending on the bank. At the same time, the volume of equity is sustainable enough for covering any unforeseen shocks. However, the distributing of dividends to shareholders may change the situation.

Both at the aggregate and individual levels, the banking sector continues to generate profit. Bas of the beginning of May, banks earned 746 million lei, which is approximately 191 million lei more than over the equivalent period of last year.