Private individuals took out consumer loans in the amount of 3.78 billion lei. These loans represented 53.4% of all the loans intended for private individuals. These are followed by home loans of 2.4 billion lei or 33.9% of the total and loans for developing businesses of 0.9 billion lei or 12.7%, says the publication “Trend Hunter” issued by the economist of the Institute for Development and Social Initiative “Viitorul” Veaceslav Ionita, who compiled the rankings of banks by loans to private individuals based on a number of criteria, IPN reports.
The study says lending to individuals is concentrated in three of the 11 commercial banks operating in Moldovan. These are Moldova Agroindbank (MAIB), MobiasBanca and Moldindconbank. The three banks, which lent 5.35 billion lei of the total of 7.08 billion lei, hold together 75% of the market of loans intended for private individuals. The rankings, which feature also Victoriabank and Fincombank on the fourth and fifth places, are based on the volume of loans released to individuals.
According to another criterion, which is the share of loans given to private individuals of the total loans, the TOP-5 rankings are headed by Eurocreditbank and Mobiasbanca that, according to the author of the publication, have an active policy to lend to private individual. MAIB, owing to the large market share, contributes to the rise in the average value of the volume of loans released to private individuals by banks. However, seven of the 11 banks have loan shares lower than the average per system, which shows that the bank haven’t realized their potential as regards lending to individuals.
As regards the rankings of banks with the smallest share of toxic loans provided to individuals, the study says the citizens are the best payers. The average rate of toxic loans is of 3.4%, which is three times lower than the average in the banking system. Even the highest rates are comparable with the average level in the banking system. The TOP-5 rankings with the lowest volume of toxic loans among private individuals include Fincombank, Comertbank, Eurocreditbank, MAIB and Mobiasbanca.
According to the figures for June 2017, the 11 commercial banks released loans totaling 34.2 billion lei, 7.1 billion lei of which or 20.8% were granted to private individuals.
