Banks of Moldova keep liquidity indicators at a high level – the NBM.
The National Bank of Moldova (NBM) announced this while assessing the financial situation in the banking sector in the first quarter of this year. The NBM noted that, in particular, the long-term liquidity ratio in the banking system of Moldova at the end of March 2021 was 0.7 with the maximum allowable level of 1, unchanged compared with the situation at the end of 2020. Current liquidity in the system was 50.4% with a minimum level of 20%. Thus, more than half of all banking sector assets are concentrated in liquid assets. The largest share in the structure of liquid assets at the end of the 1st quarter of 2021 was in deposits with the NBM - 40.7%, liquid securities - 33.5%, net interbank funds - 15.4%. In January-March 2021, the share of deposits with the NBM decreased by 2.2 percentage points (pp), and the share of cash - by 1 pp. At the same time, the share of liquid securities increased by 2 pp, and net interbank funds increased by 1.3 pp. According to the National Bank, the III principle of liquidity, which represents the ratio between the adjusted actual liquidity and the required liquidity for each maturity and should not be less than 1 for each maturity, is observed by all banks. The National Bank emphasizes that at present all banks comply with the requirements to cover liquidity needs for banks. The indicator for the sector was 294.3% (limit ≥70%) and ranged from 151% to 1237%. As noted by the NBM, according to reports submitted by banks, at the end of March 2021, the overall level of equity in the banking sector amounted to 26.6%, which is 0.5 percentage points lower compared to the situation at the end of 2020. The regulated limit is observed by all banks and varies from 19.1% to 46.9% (the regulated limit of the indicator is ≥10%). In addition, all banks complied with the Total Capital Ratio requirement, including capital buffers, with the exception of one bank where the total capital ratio was lower than the requirement imposed by the monitoring and evaluation process in conjunction with capital buffers. At the same time, in accordance with the decision of the NBM Executive Committee dated April 3, 2020, the temporary use of the capital conservation buffer is not considered a violation. // 08.06.2021 - InfoMarket
