Moldova's explains recess in banking system by global crisis
In 2009 there was a recess in the Moldovan banking system, which is explained by the global financial crisis and the impossibility to predict the activities of economic entities for the medium-term period. The National Bank of Moldova (NBM, Central Bank) made such conclusion after having analyzed the results of the NBM activities in 2009.
According to the bank's report, the capital of the first level in the banking system decreased within a year by 2.4% to 6.45 billion lei. All the banks meet the requirement on the minimal size of the first level capital in the amount of 100 million lei, which fact confirms their ability to oppose risks, including inefficient credits. The decrease in the first level capital was conditioned by the recall of Investprivatbank's license.
According to the NBM, the share of foreign investments in the Moldovan banks constituted 77.6% - 3.5% less against 2008. It reflects the increase in the authorized capital at the cost of investments made by non-resident shareholders.
The total assets of the banks increased by 2.2% up to 39,91 billion lei in 2009, but in the first place due to the increase in the banks' liabilities by 3.4%. The NBM remarks that last year the banks were more careful and reserved in undertaking crediting risks, taking into consideration complicated conditions of economic entities' activities.
The share of inefficient credits increased by 10.4% and reached 16.3% by the end of the year.
In the hard economic situation, connected with the salary reduction, the banks minimized to some extent the risks of consumer crediting. The remaining sum of such credits dropped by one third and constituted 1.65 billion lei.
Taking into consideration that in 2009 the banking system suffered losses in the amount of 145.5 million lei, the profitability of the assets and the authorized capital was negative: -0.4% and -2.1% respectively.
The NBM considers positive the liquidity indicators in the banking system, these indicators represented the banks' satisfactory ability to execute both current liabilities and the long-term ones.
The volume of deposits decreased by 2.9% - to 26.41 billion lei. At the same time, physical persons' deposits dropped by 3.7% and juridical persons' deposits - by 4.9%.
Infotag, Moldovan news agency
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