The banking sector at the end of the third quarter of 2018 continued to constantly accumulate profit. The main financial and prudential indicators of the banks were within the limits set by the banking legislation, with a powerful emphasis on the high level of liquidity in the short term. Thus, the own funds rate remained at an adequate level, of about 27.9% for the whole banking sector, with oscillations of 20% to 66% at individual level. The limit set by the National Bank of Moldova for this indicator is 10%, plus the additional capital requirements, noted the Independent Think Tank “Expert-Grup” that presented the banking performance rating at end-September, IPN reports.

In a press release, the Center said the liquidity of the banks remains much above the regulated limits, reaching about 55%, which means more than half of banks’ assets are liquid assets (state securities, National Bank of Moldova certificate or mandatory reserves). Even so, the banks continue to make profit and this came to 1.34 billion lei at end-September, being negatively influenced by the losses calculated by one bank - BC Eximbank (87.4m lei).

In September, lending activity saw the most active positive development in the past two years. The total balance of loans released by banks rose by 2.2% on last September to 34.6 billion lei. The indicators typical of the quality of the loan portfolio continued to improve and the commissions coverage rate remained adequate. The nonperforming loans at the end of September represented about 13.5%, oscillating between 5% and 33%, depending on the bank.

Individually, the banking performance rating at the end of September 2018 was topped by three banks considered of systemic importance for the national banking and financial systems. These are BC Moldova-Agroindbank, BC Mobiasbanca and BC Moldindconbank that come in descending order. These excel mainly in terms of profitability and market indicators and account for about 84% of the profit made in the sector and for 61% of all the banking assets.