During January - September 2011, Moldova's banking system has continued its positive development trends.
Tier I capital increased by 8.1 percent in this period, up to 7268.8 million lei as compared to 7.1 percent during the same period last year. The dynamics of this financial indicator shows the consolidation of the banking system after the resumption of growth in 2010.
The share of foreign investment in banks constituted 76.1 percent, by 0.9 percentage points lower compared to the end of 2010, following the increase in share capital at the expense of domestic shareholders investment. Foreign investment in absolute terms constituted 2367.8 million lei, increasing by 6.9 percent.
The average risk-weighted capital adequacy is still at a high level - 28.5 percent (minimum required level is 12 percent). The decrease of 1.5 percentage points, as compared to the end of 2010 occurred at the expense of loan portfolio growth.
Total assets on the system constituted 46323 million lei as of September 30, 2011 or by 9.6 percent more than at the end of 2010, marking an expansion of banking activity. The increase of this indicator is higher by 7.3 percentage points as compared to the same period of the last year and was fueled by the increase of liabilities by 3505.8 million lei and of the equity capital by 547.6 million lei.
Within the structure of assets, during the January - September 2011, the following have increased: net financial leasing and loans - by 16.3 percent, up to 27120 million lei, funds owed by the NBM - by 83.9 percent, up to 4385.7 million lei, cash - by 24.5 percent, up to 2482.3 million lei and other net assets - by 6.2 percent, up to 3999.3 million lei. At the same time, the funds due from banks and net overnight funds decreased - by 39.4 percent or up to 2518 million lei and net securities - by 12.5 percent or up to 5817.7 million lei. During the analyzed period, the assets quality continued to improve, driven largely by an increased quality of loans portfolio. Thus, the volume of bad loans decreased by 30.7 percent, and the share of bad loans (substandard, doubtful, and compromised) in total loans decreased by 5.2 percentage points or up to 8.1 percent as compared to the end of 2010.
In 2011 the loan portfolio remained unchanged. The loans granted in industry and trade held the largest share in total portfolio – 54.9 percent, which were followed by the loans granted to agriculture and food industry - 13.8 percent, loans granted for real estate, construction and development - 11.9 percent and consumer loans - 6.8 percent.
As of September 30, 2011 the deposits increased by 10.4 percent compared to the end of 2010, reaching the level of 31695.9 million lei, continuing to reflect the credibility of the system. In particular, the deposits of individuals increased by 12.5 percent, up to 20447.1 million lei and deposits of legal entities by 7.1 percent, up to 10447.9 million lei.
The volume of new loans granted during January - September 2011 amounted to 20436.7 million lei and was by 25.6 percent higher the volume of new loans granted during the same period of 2010. Accordingly, the volume of new attracted deposits totaled 30071.7 million lei and was by 10.9 percent higher the volume of new deposits attracted during the same period of 2010.
the net income in the banking system for January-September 2011 amounted to 650.2 million lei, which is by 75.0 percent more than during the same period last year. Return on assets and on equity capital constituted 2.0 percent and 11.5 percent respectively on September 30, 2011 increasing towards the end of 2010 by 1.5 percentage points and 8.9 percentage points respectively.
Long-term liquidity ratio of the banking system (assets with terms more than two years / financial resources with potential withdrawal term of over two years ≤ 1) recorded a level of 0.7. Current liquidity within the system (liquid assets, denominated in cash, deposits with the NBM, state securities, and net interbank credits with maturity up to one month / total assets × 100% ≥ 20 percent) accounted for 31.7 percent. The respective values of liquidity indicators shows the existence of adequate sources to support the payments related to liabilities and to determine the durability of banks to possible external shocks.
