The rise in the registered capital of Banca de Economii (BEM) up to 214 million lei is an action aimed at remedying the situation, the governor of the National Bank of Moldova Dorin Dragutanu told the journalists. According to him, in order to remain competitive on the market and to restore profitability, the BEM needs its registered capital to be increased further. “I call on the bank’s shareholders, both the state and the minority ones, to determine the capital needed in this respect,” the governor said in a news conference, quoted by IPN.

Asked what sum may be needed, Dragutanu reiterated that an additional 700 million lei is necessary to cover all the risks. “The bank’s profitability is very low, under the average per system. According to the data published by the bank, the loans represent 32% of the assets, while the average per system is over 50%. Thus, the bank cannot generate sufficient incomes from interest,” said the governor.

He also said that two of the minority shareholders were included in the BEM Administration Board in the second half of April. Now all the shareholders are able to take well-informed decisions as to the bank’s future.

According to a communiqué from the BEM, at the end of the third quarter of last year the bank increased its social capital to 214 million lei after selling property sequestrated based on delinquent loans.