The share of bad loans (substandard, dubious and compromised) in the first nine months of this year rose by 5.8% compared with the end of the previous year, representing 15.8% per sector on September 30. The given indicator varies from bank to bank, the highest value being 32.9%, IPN reports, quoting the National Bank of Moldova.
The highest rises in the share of bad loans were recorded at the banks that are under intensive (special) supervision, namely “Moldova - Agroindbank”, “Moldindconbank” and “Victoriabank”, IPN reports.
According to the reports presented on September 30, “Moldindconbank” and “Victoriabank” didn’t obey the highest limit of 15% set by the National Bank and this thus asked that the banks take measures to comply with the requirements. The central bank established there is a risk that the capital in some of the banks may be insufficient for covering potential losses if the quality of assets continues to worsen.
On September 30, the portfolio of gross loans represented 50% of all the assets or 36.3 billion lei, decreasing by 4.8% during nine months. The total volume of new loans in the period declined by 12.3% compared with the corresponding period last year owing to the economic situation in the country, the lack of demand for loans and the high average interest rate on loans. Therefore, the banks increased investments in securities (state bonds and National Bank certificates) two times, to 13.9% of all the assets.
