2008 results confirm Moldovan banking system’s capacity to resist stress, central bank

Tier 1 capital in Moldova’s banking system rose 27.5 percent to 6,665.2 million lei in 2008, further outlining the upward trends in the system and confirming its capacity to resist internal and external financial stress, the National Bank of Moldova (NBM) said in a statement, quoted by Info-Prim Neo. According to the NBM, the share of foreign investment in the banks’ capital in this period constituted 74.1 percent, which is by 2.2 percentage points (p.p.) more that at the beginning of the year. Average capital adequacy ratio remains high – 32.2 percent, as compared with the required 12 percent – and guarantees a high level of security to the banks due to the possibility of engaging in high-risk operations without affecting capital, says the central bank. Assets, as a result of the banking system growth, totaled 39,122.7 million lei, up 22.3 percent on the beginning of the year. Credits extended to industry and trade activities accounted for 48.7 percent of the total, followed by loans for homes, constructions, and development with 14.6 percent, agricultural loans with 13.3 percent, and consumer loans with 12.9 percent. The latter category of loans rose by 12.2 percent to 2,560.1 million lei. The system’s net profit rose 16.9 percent to 1,270.3 million lei. However, ROA and ROE dropped by 0.4 p.p. to 3.5 percent and by 4.1 p.p. to 19.9 percent, respectively, due to higher growth rates of assets and stockholders’ equities against a lower growth rate of the net profit.