Source: https://www.bnm.md/en/content/developments-loan-and-deposit-markets-march-2020
Timestamp: 2020-08-04 08:30:13
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Developments in loan and deposit markets in March 2020 | National Bank of Moldova
Developments in loan and deposit markets in March 2020
In March 2020, new loans1 extended by banks totalled MDL 2,624.8 million, a decrease of 8.2%, compared to March 2019.
The share of loans issued in domestic currency totalled 73.3%, in foreign currency – 23.9%, while foreing-currency-linked2 – 2.8% (Chart 1, upper chart).
The amount of loans issued in domestic currency constituted MDL 1,924.9 million (+18.2% compared to the previous month and +0.1% compared to March 2019 (Chart 1, lower chart)).
The amount of loans issued in foreign currency recalculated in MDL, totalled MDL 627.1 million (-10.1% compared to the previous month and -31.3% compared to March 2019 (Chart 1, lower chart)).
The amount of foreign-currency-linked loans constituted MDL 72.8 million (+45.3% compared to the previous month and +222.1% compared to March 2019) (Chart 1, lower chart)).
Source: Report of the NBM on average rates of new loans and deposits recorded in the banking system in March 2020.
It should be mentioned that, in terms of maturity, loans with maturity ranging from 2 to 5 years recorded the highest demand (45.2% of total loans extended), out of which the largest share of 32.4% of the total loans was held by businesses (Chart 2).
Domestic currency loans were mainly represented by loans extended to legal entities (65.8%), including loans extended to non-financial commercial companies holding a share of 61.2% (44.7% belong to trade) (Chart 3).
Foreign currency loans were mainly requested by non-financial commercial companies (98.5%), and the largest share (54.9%) belongs to trade.
New loans in domestic currency were extended at an average interest rate of 8.58%, the loans in foreign currency and foreign-currency-linked – 4.25%.
Average interest rate of domestic currency loans decreased by 0.16 percentage points compared to the previous month. Individuals received loans at an average interest rate of 7.99%, legal entities – at a rate of 8.72%, while individuals performing an activity3 – at a rate of 10.31%. (Chart 4).
Average interest rate of foreign currency loans increased by 0.08 percentage points compared to February 2020. Individuals received loans at an average interest rate of 6.55%, businesses – at a rate of 4.25%, while individuals performing an activity – at a rate of 3.50%.
Average interest rate of foreign-currency-linked loans decreased by 1.36 percentage points, compared to February 2020. Individuals received loans at an average interest rate of 5.57%, legal entities – at a rate of 4.03%, while individuals performing an activityat–at a rate of 4.31% in March.
Compared to the similar period of the previous year, the interest rates of domestic currency loans increased by 0.41 percentage points, of foreign currency loans decreased and of those foreign-currency-linked loans decreased by 0.01 and 0.59 percentage points, respectively.
The volume of loans in domestic currency issued to individuals in March 2020 decreased in comparison with the previous month by 18.9% and totalled MDL 567.2 million (Chart 5). The average rate of loans in domestic currency issued to individuals in the same period decreased by 0.46 percentage points and constituted 7.99%. From the perspective of scope of issued loans, the consumer loans had the highest share (65.1%). In comparison with the previous reference month, the rate of consumer loans decreased by 0.66 percentage points, but the rate of mortgage loans – by 0.18 percentage points. Compared to the previous year, the rate of consumer loans increased by 0.50 percentage points, while of mortgage loans - increased by 0.90 percentage points. It should be mentioned that the share of mortgage loans issued in domestic currency constituted 97.4% (2.6% refer to the foreing-currency-linked loans), while consumer loans – 98.4% (1.4% were issued as foreing-currency-linked).
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 8.44% (8.66% for legal entities, 7.83% - for individuals, and 10.83% for individuals performing an activity), (Chart 6).
It should be mentioned that the highest average interest rate of extended domestic currency loans was registered for loans with maturity up to 1 month and constituted to individuals 10.58%, to legal entities for loans a rate constituted 9.83%, while for individuals performing an activity a rate of 13.50% (Chart 6).
The most attractive foreign currency loans with maturity from 2 to 5 years were extended at an average interest rate of 4.28%, where individuals were granted loans with an average interest rate of 6.55%, legal entities - 4.28%. (Chart 7)
The most attractive loans foreing-currency-linked, with maturities from 2 to 5 years, have been issued at an average interest rate of 4.25%, individuals received loans at an average interest rate of 6.90%, while legal entities – at a rate of 3.64%, while for individuals performing an activity at an average interest rate of 4.31% (Chart 8).
In March 2020, the new term deposits totalled MDL 1,665.0 million, decreasing by 29.7% compared to March 2019 (Chart 9).
Domestic currency deposits totalled MDL 1,089.4 million (-6.3% compared to the previous month and -25.6% compared to March 2019).
Foreign currency deposits recalculated in MDL totalled MDL 575.6 million (-22.2% compared to the previous month and -36.3% compared to March 2019).
Domestic currency deposits accounted for a share of 65.4%, while foreign currency deposits -34.6%.
Source: Report of the NBM on average rates on new loans and deposits recorded in the banking system in March 2020.
In March 2020, the largest share of deposits was represented by deposits of individuals – 69.5% (of which 42.6% represent domestic currency deposits, and 26.9% - foreign currency deposits).
In terms of maturity, the highest demand was recorded for deposits with terms from 6 to 12 months (39.6% of total term deposits). It is worth mentioning that by categories of clients, a significant share of deposits was held by individuals (30.4% of total deposits).
The average interest rate of domestic currency term deposits constituted 4.01%, and of foreign currency – 1.01%.
The average interest rate of new domestic currency term deposits decreased by 0.51 percentage points compared to the rates of the previous month. Individuals placed deposits at an average interest rate of 4.63%, legal entities – at 2.86%, while individuals performing an activity – at an average interest rate of 4.96%.
The average interest rate of new foreign currency term deposits decreased by 0.05 percentage points compared to February 2020. Individuals placed deposits at an average interest rate of 1.05%, legal entities – at 0.88%, while individuals performing an activity did not place new deposits.
Compared to the similar period of the previous year, the average interest rates of domestic currency deposits decreased by 0.35 percentage points (deposits of individuals increased by 0.04 percentage points, while for legal entities decreased - by 0.52 percentage points, and for individuals performing an activity – by 0.04 percentage points). The average interest rate of foreign currency deposits increased by 0.15 percentage points (deposits of individuals increased by 0.20 percentage points, of legal entities decreased – by 0.26 percentage points, while individuals performing an activity- did not place foreign currency deposits during the reference period or in March 2019).
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 4.55% (deposits for individuals – at a rate of 4.71%, for legal entities – at 3.99%, for individuals performing an activity – 5.0%) (Chart 12), whereas the foreign currency deposits – at 0.89% (deposits for individuals – at 1.03%, for legal entities – at 0.48%) (Chart 13).
The highest average interest rate of domestic currency deposits was recorded for the term deposits with maturity over 5 years for individuals – 5.62%. In the case of legal entities, the highest rate was registered in the deposits with maturity from 3 to 6 months (4.64%), while in the case of individuals performing an activity – deposits with the maturity from 6 to 12 months registered a rate of 5.0%. (Chart 12)
The highest average interest rate of foreign currency deposits was recorded for the deposits with maturity over 5 years for individuals (1.64%), legal entities, with maturity from 1 to 2 years (2.23%).
Interest rate margin of domestic currency transactions constituted 4.57 percentage points, while of foreign currency – 3.24 percentage points.
Interest rate margin of domestic currency transactions increased by 0.35 percentage points compared to the values of the previous month and by 0.76 percentage points compared to March 2019. (Chart 14)
Interest rate margin of foreign currency transactions increased by 0.13 percentage points compared to the previous month and decreased by 0.17 percentage points compared to March 2019.