OREANDA-NEWS. October 29, 2014. NBM explains the decline by the 25.9% increase in non-interest incomes and by the 13.5% rise in interest ones. As of the end of September 2014, Tier One Capital was MDL 8 billion 107.8 million, up 2.3% since the beginning of the year.

The increase was formed, to a large extent, by the incomes the banking sector earned in the reporting period and by the issues of new shares at three banks of Moldova. As of the end of September 2014, all but one banks of Moldova have met the Tier One Capital requirement, having at least MDL 200 million each. Foreign investments in the capital of banks made up 76.4% as of the end of September, 2014, up 4.2 p.p since the beginning of the year.

 The increase was explained by the 15.2% growth in investment made in equity capital by non-resident shareholders and the 7.4% decrease in investment made in equity capital by resident shareholders.

Risk-weighed capital adequacy was still high in the reporting period, sliding 3.2 p.p. only since the beginning of the year and making 19.8% against the minimum required of 16%. As of the end of September all but one banks of Moldova met that requirement, which proves their high lending potential and the absence of non-coverage risks. Total assets of banks made up MDL 82 billion 114 million, up 7.8% since the beginning of the year. In their structure, the loans and receivables grew the most – by 12.4% and were MDL 49 billion 125 million.

These two components made the biggest share in the total amount of the assets, being 59.8%, up 2.4 p.p. since this January. The balance of loans amounted to MDL 47 billion 228.5 million in the reporting period, up 12% since the beginning of the year. Bad credits made up MDL 5 billion 804.1 million, up 19% since the beginning of the year. The bad credits included substandard, doubtful and uncollectible loans and their share increased 0.7 p.p. in the total volume of loans and 2.5 p.p. in TRC.

Over the first 9 months of 2014 Moldova’s banks issued loans amounting to MDL 24 billion 685.3 million, up 21.3% against the same period of the past year. A volume of new deposits declined 14% to MDL 28 billion 969.6 million. Return on assets and TRC was 1.3%, down 0.3% and 8.5%, down 0.9% respectively as of September 30. The long-term liquidity coefficient was 0.7, with the maximum permissible level being 1.

The current liquidity was 34.2%, with the minimum required being 20%. The balance of deposits attracted as of the end of September, 2014 made up MDL 57 billion 087.9 million, 11.5% up since the beginning of the year, NBM reports. Deposits attracted from individuals grew 8.2% to MDL 33 billion 933.3 million.