These loans are not always directed for export oriented projects and thus are not naturally hedged against currency fluctuations. As in other CIS countries, connected lending, and, to a lesser extent, state interference is present. Most private banks belong to groups of commercial companies and as such could be subject to pressures from their corporate shareholders to grant preferential credits. Although the state has disposed of its majority stakes in banks, there is some indication that it countries to interfere in the banking system. Two of the ex state-owned banks are still preferred vehicles for directed credits, although backed by a state guarantee, to the agricultural and defense sector.
Liquidity is a vulnerable point for Moldovan banks.
Retail deposits are low and volatile. Following the collapse of the secondary T-Bills market after the Russian crisis, the NBM introduced paper with two or three day s maturity to increase the liquidity of the system.