Moldova Agroindbank, Mobiasbanca, Moldindconbank and Victoriabank top the rankings of commercial banks with the best performance. The rankings were compiled by experts of the independent think tank “Expert-Grup” at the end of March 2018. Amid an enhanced performance, another two banks, ProCreditBank and BCR Chisinau, witnessed an advance compared with the previous period, IPN reports.
At the end of the first quarter, the main financial and prudential indicators of the commercial banks remained over the limits imposed by the National Bank of Moldova, but with the risk of supporting large opportunity costs. The liquidity and solvability indicators remained over the prudential requirements, while the capital reserves guaranteed a good absorption capacity of unexpected losses, such as additional resources for lending to the economy.
The sufficiently of the risk-weighted assets remained at the level of over 30% in the whole banking sector, oscillating within 25% for the large banks and exceeding 50% for the small ones. At the same time, the volume of liquid assets tends to the level of 57% of all the assets, while at individual level the figures exceed 74%. This shows that the banks incur considerable opportunity costs in the absence of loan expansion.
The total profit made by the commercial banks in three months rose to 522.3 million lei. Only Eximbank sustained losses of about 8 million lei.
The lending activity witnessed a slight rise in the direction of new loans released, but insufficient for improving the financial intermediation function of the banks, considers Expert-Grup. In the first quarter, there were released new loans to the value of 5.7 billion lei, an increase of about 5.4% compared with the corresponding period last year.
According to Expert-Grup, the quality of bank assets tends to improve, emphasizing the measures adopted by banks for reducing the volume of non-performing loans. The balance of the debt for loans assessed as substandard, dubious and compromised decreased by about 900 million lei in December 2017 – March 2018, amounting to 5.25 billion lei at the start of March, with a share of 16.2% of the released loans.
