OREANDA-NEWS. January 28, 2011. The banks’ first level capital in 2010 increased by 5.2% - to 6,758 million leis, according to the National Bank of Moldova. The dynamics of this indicator last year after the 2.8% contraction in 2009 confirms that Moldova’s banking system has overcome the crisis.

The share of foreign investments in banks’ capital as of the end of December 2010 constituted 77%, down 0.6 percentage points from the beginning of the year as a result of the increase in the authorized capital at the expense of resident shareholders’ investments. The average capital adequacy given the risk in the system amounted to 30.1% (the minimal level being 12%), down 2 percentage points from the beginning of the year.

The indicator reflects the increased potential of bank crediting. Total assets in the banking system by the end of December 2010 amounted to 42,302.9 million leis, up 5.9% from the beginning of the year. Credits and financial leasing increased in the assets structure by 15.3% - to 23,350.3 million leis, net securities – by 9.9% - to 6,651.1 million leis, funds to be paid by the National Bank – by 22.7% - to 2,384.6 million leis. At the same time, money to be paid by banks and net overnight funds reduced by 24% - to 4,155.2 million leis, net assets reduced by 7% - to 3,767.2 million leis, cash – by 8.5%, to 1,994.3 million leis.

The share of credits and financial leasing made up 55.2%, up 4.5 percentage points from the beginning of the year. The quality of the credit portfolio improved in the country in 2010, the National Bank says. Particularly, the share of unfavorable credits in the total volume of credits contracted by 3.1 percentage points since the beginning of the year, constituting 13.3% by the end of the year.

The share of unfavorable credits in the total normative capital reduced by 6.6 percentage points making up 49.5% as of the end of 2010. The biggest share in the total volume of the credit portfolio as of the end of 2010 was made up by credits for industry and trade – 51.4%. They were followed by credits for agriculture and food industry – 14.9%, credits for real estate, construction and development – 12.3%, consumer credits – 8.4%. Return on assets and share capital as of the end of December 2010 constituted 0.5% and 3%, respectively. As of the end of 2009, these indicators were negative – -0.5% and -2.5%, respectively.

The long-term liquidity throughout the banking system of Moldova constituted 0.7% with the maximum permissible level of 1%, while the current liquidity in the system was 34.2% with the minimal level of 20%. Banks’ liabilities as of the end of December 2010 totaled 35,013 million leis, up 6.1% from the beginning of the year. Deposits grew 8.7% - to 28,718.5 million lei, including individuals’ deposits – by 10.4% - to 18,174.3 million leis, reflecting the growing trust in the banking system of Moldova as financial crisis has been overcome.