About 78.4% of the assets of the banking sector of Moldova are concentrated in 4 banks.
According to the National Economic Research Institute (INCE), the degree of concentration of the domestic banking sector in 2020, according to the Herfindahl-Hirschman Index (HHI), remains high. According to experts, the concentration of the banking sector continues in Moldova, as well as the growth of competition between banks. According to experts’ estimation, the asset concentration index increased from 1750.3 points in 2019 to 1761.9 points in 2020, while, on the whole, the Moldovan market fits into the parameters of a moderately concentrated banking market. The share of total assets of 4 large banks decreased from 78.7% in 2019 to 78.4% in 2020. The largest volume of assets is concentrated in Moldova – Agroindbank: its market share was 29.3% (2019 - 28.6%); Moldindconbank - 20.5% (20.4%); Victoriabank - 14.8% (16.2%); Mobiasbanca - OTP Group - 13.8% (13.5%). The concentration level of 4 medium-sized banks in 2020 slightly decreased - from 15.8% to 15.7%. In particular, the assets of ProCredit Bank grew from 4.4% to 4.8%; Eximbank - decreased from 4.8% to 4.4%; Energbank - remained at the level of 2.8%; FinComBank decreased from 3.8% to 3.7%. The concentration of assets in 3 small banks increased from 5.7% to 5.9%: in BCR Chişinau this indicator was 2.9% (-0.3 p.p.), Comertbank - 1.7% (-0.1 pp), EuroCreditBank - 1.3% (unchanged). The HHI indicator in terms of the volume of loans issued decreased from 2015.4 in 2019 to 1961.8 in 2020, and the concentration level of 4 large banks decreased by 0.5 percentage points - up to 79.1%. Most loans last year were issued by MAIB - 34.2% (-1.1 p.p.), Moldindconbank - 17.9% (-0.8 p.p.), Mobiasbanca - OTP Group - 16.8% (+1.3 p.p.), Victoriabank - 10.2% (+0.1 p.p.). The shares of small and medium-sized banks by the volume of loans issued were: ProCredit Bank - 7.1% (+0.9 p.p.), Eximbank - 3.6% (+1.4 p.p.), FinComBank - 3.3% (-0.8%), BCR Chişinau - 2.1% (+0.3 p.p.), Comertbank - 1.9% (+0.1 p.p.), Energbank - 1.7 % (-0.6 p.p.), EuroCreditBank - 1.2% (-0.2 p.p.). The HHI indicator in terms of the volume of deposits attracted by banks decreased from 1838.6 in 2019 to 1832.3 in 2020, and the concentration level of 4 large banks decreased by 0.3 percentage points - to 80.6%. The highest concentration of deposits in MAIB - 30% (+ 0.3 p.p.) and Moldindconbank - 20.7% (+0.1 p.p.), followed by Victoriabank - 15.1% (-1. 7 p.p.), Mobiasbanca - OTP Group - 14.8% (+1 p.p.), as well as medium and small banks: Eximbank - 4% (-0.5 p.p.), ProCredit Bank - 3.5% (+0.3 p.p.), Energbank - 2.6% (unchanged), FinComBank - 3.6% (unchanged), BCR Chişinau - 3.1% (+0.5 p.p.), Comertbank - 1.5% (unchanged), EuroCreditBank - 1.3% (+0.1 p.p.). // 26.04.2021 - InfoMarket
