Banks of Moldova keep liquidity indicators at a high level - NBM.
The National Bank of Moldova (NBM) announced this while assessing last year’s financial situation in the banking sector. The NBM noted that, in particular, the long-term liquidity ratio in the banking system of Moldova as of the end of 2020 amounted to 0.7, with the maximum allowable level of 1, unchanged, versus the situation as of the end of 2019. Current liquidity in the system was 50.6% 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 2020 was in deposits with the NBM - 42.9%, liquid securities - 31.5%, net interbank funds - 14.1%. In 2020, the share of deposits with the NBM decreased by 2.7 percentage points due to a decrease in the required reserve ratio of banks from 42.5% to 32%, and the share of net interbank funds decreased by 3.1 percentage points. At the same time, the share of liquid securities increased by 5.8 percentage points, while the share of cash remained practically the same. 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 NBM noted that from October 1, 2020, the Regulation on the requirements to cover liquidity needs for banks took effect. According to this Regulation banks must maintain the liquidity coverage ratio as follows: 60% of the liquidity coverage requirement, starting from October 1, 2020; 70% starting from January 1, 2021; 80% starting from January 1, 2022; 100% starting from January 1, 2023. The National Bank emphasizes that currently all banks comply with the new regulations. The indicator by sector was 317.8% (limit ≥ 60%) and ranges from 151% to 988.3%. As noted by the NBM, according to reports submitted by banks, as of the end of 2020 the overall level of equity in the banking sector amounted to 27.1%, which is 2.2 percentage points higher compared to the situation at the end of 2019.The regulated limit is observed by each bank and varies from 19.1% to 54%. All banks complied with both the regulatory threshold (≥ 10%) and capital requirements established as a result of the monitoring and evaluation process. // 20.04.2021 – InfoMarket
