Share of foreign investments in Moldovan banks’ capital reduced by 1.9%

The share of foreign investments in the capital of Moldovan banks constituted 48.7% on June 30, 2006, diminishing compared with the end of 2005 by 1.9 percentage points (p. p.). However, on the whole the National Bank of Moldova (NBM) announces a positive evolution in the banking area for the first semester of 2006. According to the Press Center of NBM, the share of foreign investments has reduced due to the cancellation on June 29, 2006 of the authorization of JSC “Busibessbank” CB at the request of the bank, which held a share of 96% of foreign capital in its social capital. According to the same sources, the 1st level capital which shows the capacity of banks to cover possible loss increased by 9.3%, up to MDL 3.081 mln. On the aforementioned date, the total system assets amounted to MDL 19.95 bln, increasing by 11.2% during the semester. In the similar period of 2005 the increase constituted 9.5%. The highest increase was registered at the net credits portfolio – 13.5%, being higher compared with the similar period of the last year when the increase constituted 4.3%. The share of this portfolio in the total sum of assets has increased by 1.1 p. p., up to 54.3%. At the same time, the share of unfavorable credits in the total amount credits constituted 5.4%, increasing by 0.1 p. p. The net income in the banking system in the first semester constituted MDL 282.8 mln, by 38.2% more compared with the similar period of 2005. Assets’ and stock capital’s profitability was of 3% and 18.1%, increasing by 0.2 p. p. and by 2.7 p. p. compared with the end of the last year.