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 for 9 months of this year. The NBM noted that, in particular, the long-term liquidity ratio in the banking system of Moldova as of the end of September 2021 amounted to 0.76 with the maximum allowable level of 1, practically unchanged relative to the situation as of the end of 2020. Current liquidity in the system was 48.6% with a minimum level of 20%. Thus, almost half of all banking sector assets are concentrated in liquid assets. The largest share in the structure of liquid assets as of the end of September 2021 was in deposits with the NBM - 38.9%, liquid securities - 30.5%, net interbank funds - 18.7%. During January-September 2021, the share of deposits with the NBM decreased by 4percentage points (p.p.), while the share of liquid securities decreased by 1 p.p. At the same time, the share of net interbank funds increased by 4.4 p.p., and the share of cash - by 0.5 p.p. 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 the ratio of coverage of liquidity needs in the sector was 228.6% (limit ≥ 70% from January 1, 2021). All banks currently comply with these requirements. As noted by the NBM, according to reports submitted by banks, as of the end of September 2021, the overall rate of equity in the banking sector amounted to 25.9%, which is 1.4 percentage points lower, compared to the situation as of the end of 2020 and varied in banks from 18.9% to 46.3%. All banks complied with the rate of total own funds (≥ 10%). In addition, all banks complied with the requirement for the rate of total equity capital, taking into account capital buffers. At the same time, for two banks, the indicator of the total rate of total equity capital, including while taking into account the capital buffer, was lower than required. At the same time, in accordance with the decision of the NBM Executive Committee of April 3, 2020, the temporary use of the capital conservation buffer is not considered a violation. // 02.12.2021 - InfoMarket
