Financial indices drop in 1st half

In semester 1 of 2009, some financial indices in the Moldovan banking system dropped, telling of the contraction of the banking activity, in the wake of the ongoing world financial crisis. The question is about the contraction of the work of Moldovan companies, Info-Prim Neo learns from the National Bank of Moldova. In H1, the index of the capacity of coverage of possible losses of banks – pier 1 capital – fell by 2.3%, to 6,460.4 million lei. As for every particular bank, this index exceeds the minimum established by the Central Bank (BNM). The drop in this capital was conditioned by the withdrawal of Investprivatbank's license and by the increase in non-material assets, BNM specifies. The share of foreign investments in the banks' capital was 75%, rising 0.9 p.p. as compared to the beginning of the year. The average of the capital sufficiency weighed to the risk in the system continues to be high – 32.8%. The required minimum level is 12 %. The total assets in the system dropped by 6.4%, to 36,586.8 million lei in H1, which was conditioned by the decrease of debts and shareholders' capital. The largest share in the loans portfolio by the end of H1 was accounted for by the loans yielded to industry and trade – 50.2%, followed by loans for agriculture and food industry – 15%, then the ones for realty, constructions and development – 12,8% and consumer loans – 11.3%. In the first half, the share of the consumer loans dropped by 19.1% to 2,072.2 million lei. The share of credits yielded to trading companies was 7,079 million lei, that is 0.4% more than by the end of last year. The share of the loans granted to small and medium enterprises was 7,260.8 million lei, dwindling by 19.9%. The net income in the banking system in H1 was 88.7 million lei, the profitability of assets being by 0.5% less than earlier this year, while the profitability of the shareholders' capital – 2.6%. The banks' debts later in semester 1 were 29,749.7 million lei, that is by 7.3 % less than earlier this year. The deposits dropped by 11.1 % to 24,182.9 million lei, mainly because of excluding Investprivatbank's deposits, in amount of 876.5 million lei, as it lost its license.