In 1H 2023, one of the banks of Moldova exceeded the limit of 30% of the prudential indicator for loan exposures.
The National Bank of Moldova (NBM) reported this, noting that as of June 30, 2023, all banks in the country complied with the prudential indicators regarding exposures and exposures to affiliated persons, except for 1 bank, which exceeded the limit of 30% of the aggregate amount of exposures on loans of customers or group of related customers, which in terms of size constitute the first 10 exposures on loans in the total portfolio of loans, amounting to 43.4%. According to the NBM, in accordance with the provisions of the Regulation on large exposures (Chapter IV, item 26), exceeding the limit of this indicator is not considered a violation if the bank fulfills the additional requirement of own funds for this excess, and the bank complies with these requirements. The National Bank also indicated that, as of June 30, 2023, all banks complied with the limit of dominant position in the banking market, with the exception of 1 bank that exceeded the 35% limit of this indicator on the size of retail deposits, which amounted to 35.1%. According to the Regulation on Large Exposures, the aggregate amount of exposures on loans granted to 10 customers, including groups of related customers, which are the first ten credit exposures by size, after taking into account the effect of credit risk mitigation in accordance with Chapters VI-IX, shall not exceed 30% of the bank's total loan portfolio net of allowances for loan losses and contingent liabilities issued to ten persons, including groups of related persons, which are the first ten loan indebtedness by value, net of allowances for losses on relevant contingent liabilities. If the same debtor is included in several groups of related customers, when calculating this indicator, the exposure with respect to this person will be included only once within the group that includes the largest exposure for the bank. Exposure - the amount of any asset or off-balance sheet item specified in the Regulation on the approach to credit risk for banks according to the standardized approach. Large exposure - the exposure of a bank to a customer or a group of related customers, the size of which is equal to 10% or more of the eligible capital of the respective bank. // 07.09.2023 – InfoMarket
