Source: http://www.bnm.md/en/content/developments-loan-and-deposit-markets-july-2019
Timestamp: 2020-04-08 01:53:44
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Developments in loan and deposit markets in July 2019 | National Bank of Moldova
Developments in loan and deposit markets in July 2019
In July 2019, new loans1 extended by banks totalled MDL 2,850.4 million, recording an increase of 14.9%, compared to July 2018.
The amount of loans issued in domestic currency totalled 72.7%, while in foreign currency – 27.3% (Chart 1, upper chart)
Domestic currency loans totalled MDL 2,073.0 million (-0.23% compared to the previous month and +37.2% compared to July 2018 (Chart 1, lower chart)).
Foreign currency loans recalculated in MDL, totalled MDL 777.1 million (+3.3% compared to the previous month and -19.8% compared to July 2018 (Chart 1, lower chart)).
Source: Report of the NBM on average rates on new loans and deposits recorded in the banking system in July 2019.
It should be mentioned that, in terms of maturity, loans with maturity ranging from 2 to 5 years recorded the highest demand (44.4% of total loans extended), out of which the largest share of 26.4% was held by legal entities (Chart 2).
Domestic currency loans were mainly represented by loans extended to legal entities2 (50.1%) as well as loans extended to non-financial commercial companies holding a share of 43.3% (56.7% belong to trade companies), (Chart 3).
Foreign currency loans were mainly requested by non-financial commercial companies (94.3%), trade companies having the biggest share (65.2%).
New loans were extended at an average interest rate of 8.0% (domestic currency loans) and - 4.42% (foreign currency loans).
Average interest rate on domestic currency loans decreased by 0.11 percentage points compared to previous month. Individuals received loans at an average interest rate of 7.42%, while legal entities – at a rate of 8.59% (Chart 4).
Average interest rate on foreign currency loans increased by 0.01 percentage points compared to June 2019. Individuals received loans at an average interest rate of 4.65%, while legal entities – at a rate of 4.41%.
Compared to the similar period of the previous year, the afore-mentioned interest rates diminished (domestic currency by -0.67 percentage points, foreign currency – by 0.40 percentage points).
Domestic currency loans with maturity from 2 to 5 years recorded the highest demand in the reporting month and were extended at an average interest rate of 7.82% (8.52% for legal entities and 7.22% - for individuals) (Chart 5).
It should be mentioned that the highest average interest rate on loans extended in domestic currency was registered on loans with maturity for up to 1 month (9.93%), where individuals received loans at an interest rate of 10.22%, while legal entities – 9.81% (Chart 5).
Foreign currency loans with maturity from 2 to 5 years were extended at an average interest rate of 4.41%. Individuals were granted loans with an average interest rate of 5.42%, and legal entities - 4.40% (Chart 6).
In July 2019, new term deposits totalled MDL 2,393.7 million, decreasing by 7.2% compared to July 2018 (Chart 7).
Domestic currency deposits totalled MDL 1,520.7 million (+16.7% compared to the previous month and -0.03% compared to July 2018).
Foreign currency deposits, recalculated in MDL, totalled MDL 872.9 million (-0.8% compared to the previous month and -17.4% compared to July 2018).
Domestic currency deposits accounted for a share of 63.5%, while foreign currency deposits -36.5%.
Source: Report of the NBM on average rates on new loans and deposits recorded in the banking system for July 2019.
In July 2019, deposits were mainly represented by deposits of individuals – 83.2% (of which 49.5% represent domestic currency deposits, and 33.7% - foreign currency deposits).
In terms of maturity, the highest demand was recorded for deposits placed for a period from 6 to 12 months (45.8% of total term deposits). It is worth mentioning that by categories of clients, a significant share of deposits was held by individuals (40.5% of total deposits placed).
The average interest rate for deposits in domestic currency constituted 4.54%, and in foreign currency – 0.94%.
Average interest rate on new term deposits in domestic currency decreased by 0.06 percentage points compared to the previous month. Individuals placed deposits at an average interest rate of 4.85%, while legal entities – at 3.44%.
Average interest rate on new term deposits in foreign currency decreased by 0.10 percentage points compared to June 2019. Individuals placed deposits at an average interest rate of 0.91%, while legal entities – at 1.28%.
Compared to the similar period of the previous year, the average interest rates on deposits in domestic currency increased by 0.10 percentage points (deposits of individuals increased by 0.20 percentage points, while those of legal entities’ decreased by 0.32 percentage points). The average interest rate of deposits in foreign currency decreased by 0.19 percentage points (deposits for individuals increased by 0.05, while for legal entities – decreased by 0.56 percentage points).
Domestic currency deposits with maturity from 6 to 12 months, which recorded the highest demand in the reporting period, were placed at an average interest rate of 4.86% (deposits for individuals – 5.02%, deposits for legal entities – 3.89%) (Chart 10), whereas the foreign currency deposits – 1.0% (deposits for individuals – 1.0%, deposits for legal entities – 0.99%) (Chart 11).
The highest average interest rate on domestic currency deposits was recorded for the deposits for individuals with maturity from 1 to 2 years (5.43%) and over 5 years (6.16%), and for legal entities – for the deposits with maturity from 1 to 2 years (4.96%) (Chart 10)
The highest average interest rate on foreign currency deposits was recorded for the deposits of individuals with maturity of over 5 years (1.88%), and for the deposits of legal entities with maturity from 1 to 2 years (2.38%).
Interest rate margin for domestic currency transactions constituted 3.47 percentage points, while for foreign currency – 3.48 percentage points.
Interest rate margin of domestic currency transactions decreased by 0.04 percentage points compared to the previous month and by 0.76 percentage points compared to July 2018.
Interest rate margin of foreign currency transactions decreased by 0.11 percentage points compared to the previous month and by 0.21 percentage points compared to July 2018.