OREANDA-NEWS. February 04, 2014. NBM explains the growth by a contraction of non-interest expenses by MDL 549.9 million (15.9%). In particular, impaired financial assets decreased MDL 422.2 million (57.3%). At the same time, interest incomes grew MDL 348.5 million (7.9%).

As of the end of December 2013, Tier One Capital was MDL 7 billion 919.3 million, up 14.6% since the beginning of the year. The growth was determined by the incomes of the banking sector and by the issues of shares of 4 banks. The indicator reflects an ability of banks to cover emergency losses without damaging financial security. As of the end of 2013, all but one banks of Moldova has met Tier One Capital requirement, having at least MDL 200 million. Foreign investments in the capital of banks made up 72.2% as of the end of December, 2013, up 0.5 p.p since the beginning of the year.

The increase was explained by the 16.9% growth in investment made in equity capital by non-resident shareholders and the 13.6% growth in investment made in equity capital by resident shareholders. Risk-weighed capital adequacy was still high in the reporting period, sliding 0.9 p.p. only since the beginning of the year and making 23.4% against the minimum required of 16%. Total assets of the banking system increased 31% to MDL 76 billion 184 million, reflecting the banking activity extension.

In their structure money and their equivalents increased 69.5% to MDL 24 billion 346.1 million, loans and receivables growing 20.7% to MDL 43 billion 728.6 million. The balance of loans was MDL 42 billion 177.3 million as of the end of December, 2013, up 20.6% since the beginning of the year, which reflects intensification of the lending process. The quality of loan portfolios at banks also improved. Bad credits decreased 3.7% to MDL 4 billion 883 million, their share in TRC shrinking 9.3 p.p. to 16.6% as of the end of December, 2013. In 2013 banks of Moldova issued 14.3% more loans at an amount of MDL 30 billion 504.5 million.

A volume of new deposits declined 12.3% to MDL 34 billion 125.2 million. Return on assets and equity capital made up 1.6% and 9.4% respectively as of December, 31, 2013, up 0.8 p.p. and 5.1 p.p. respectively within the year. The long-term liquidity coefficient was 0.7, with the maximum permissible level being 1. The current liquidity was 33.8%, with the minimum required being 20%.

These liquidity coefficients indicate that banks have enough means to support payments accompanying liabilities and will keep stability in case of possible external shocks. The balance of deposits attracted as of the end of December, 2013 made up MDL 51 billion 889.9 million, up 30.5% since the beginning of the year, NBM reports. Deposits attracted from individuals grew 23% to MDL 31 billion 349.3 million, which reflects an increase in the confidence of people in the banks of Moldova.