OREANDA-NEWS. March 09, 2011. The press release of the Association of Banks of Moldova reads that the recent accusations voiced by independent experts for banks preventing “sustainable economic development of Moldova” and the extensive coverage of the problems the banks are also accused of, form a biased perception of Moldova’s banking sector.

The Association specifies that the banks’ functions is absolutely wrong determined in many statements and reminds that a bank is a financial institution, the main goal of which is to attract deposits and provide credits and gain profit by rendering financial services. Banks cannot provide loans by force in conditions of risk and uncertainty (inaccuracy of entrepreneurs’ business plans, grave financial situation in companies, financial and accounting reports of enterprises failing to meet international requirements, poor development of the capital market, inappropriate business infrastructure and others).

Under these circumstances, banks exercise vigilance and prudence when crediting and the rates of credits and deposits are determined, first of all, by the economic factors, such as the inflation rate and the liquidity level of the system. At the same time, the Association of Banks of Moldova notes that in 2010 Moldova’s banking system demonstrated stability and development potential, having achieved a high liquidity degree.

“A 13% increase in the balance pf deposits in 2010 proves growth of trust in the banking system. The share of bank assets in the GDP structure in 2010 constituted 58.9%, the share of bank credits in the GDP – 37.5%. The Association also notes that the international financial organizations – the IMF, WB, EBRD give a positive estimation to the results of the Moldovan banking system development. It admits though presence of potential for the further development and improvement of the sector, in terms of provision of the credit process transparency, improvement of the dialogue between banks and clients, promotion of the population’s financial culture and others.