In October 2014 the monetary basethe monetary base includes money in circulation (outside banking system), banking reserves (banks' reserves in MDL on correspondent accounts maintained at the National Bank of Moldova and cash in banks), deposits at sight of other organizations with the National Bank of Moldova, “overnight” deposits of banks and required reserves in foreign currency. was MDL 26191.7 million, increasing by MDL 380.2 million (1.5 percent) compared to September 2014. The increase of the monetary base was determined by the increase in the net foreign assets by MDL 398.2 million (1.2 percent). At the same time, net domestic assets decreased by MDL 17.9 million (0.3 percent). Money supply M2Money supply M2 includes monetary aggregate (M0), deposits in MDL of residents and money market instruments. was MDL 45040.5 million, increasing during the reporting period by MDL 313.5 million, or by 0.7 percent as compared to September 2014. At the same time,money supply M3 Money supply M3 includes money supply M2 and deposits in foreign currency of residents expressed in MDL. increased by MDL 669.6 million (1.0 percent) in October 2014.
The analysis of the passive components of money supply (M3) denotes the fact that this increase was driven by the increase in the monetary aggregate balance, Money in circulation M0 Money in circulation M0 represents cash in circulation put by the National Bank of Moldova, except for cash in banks and NBM vault. by MDL 69.2 million and in the total deposits balance – by MDL 600.4 million in October 2014 (Table no. 1).

Table no.1. Passive components of money supply

The balance of deposits in national currency was MDL 27436.0 million, increasing by MDL 244.2 million, which share equaled to 56.8 percent of total balance of deposits and the balance of deposits in foreign currency (recalculated in MDL) increased by MDL 356.2 million up to the level of MDL 20842.3 million (with a share of 43.2 percent) (Table no.2).

Table no.2. Deposits structure Deposits structure is classified by institutional sectors, according to the Instruction on filling out by the licensed banks of the Report on monetary statistics (Official Monitor of the Republic of Moldova no.206-215 of December 2, 2011).

The increase of money supply M3 in the reporting period was determined by the increase in net foreign assets of the banking system by MDL 99.8 million (0.3 percent) and the net domestic assets increased by MDL 569.8 million (1.9 percent). Domestic credit of the banking system increased by MDL 1270.1 million, up to the level of MDL 48808.1 million, due to the increase in the balance of  net claims on the Government by MDL 489.2 million and the balance of credits granted to economy by MDL 780.9 million.

The balance of credits in economyAccording to the IMF methodology, the interbank credits and the credits granted to the Government are excluded from the total credits in the economy (including the interest calculated for credits and for credits of banks - in liquidation process). increased by 1.6 percent in October 2014 at the expense of the increase of credits granted to the economy in national currency by MDL 70.1 million (0.2 percent), and those granted in foreign currency (recalculated  in MDL) by MDL 710.8 million (3.8 percent) (Table no.3). At the same time, the credits granted to the economy in foreign currency, expressed in USD, increased by USD 31.3 million.  

Table no.3. Structure of credits granted to economy

 Positive evolution of the balance of credits granted to economy in national currency was determined by the increase in the balance of credits granted to the non-financial companies sector, which majority ownership is private, by MDL 107.0 million (0.5 percent) and the balance of credits granted to the non-financial companies sector, which majority ownership is public by MDL 19.1 (2.4 percent). At the same time, the balance of credits granted to non-banking financial sector and that of credits granted to other resident sectors (including individuals) decreased by MDL 4.4 million (0.8 percent) and by MDL 51.6 million (0.7 percent), respectively.

At the same time, the balance of credits granted to economy in foreign currency (expressed in MDL) was influenced by the increase in the balance of credits granted to the non-financial companies sector, which majority ownership is private – by MDL 703.3 million (4.1 percent) and the balance of credits granted to other resident sectors (including individuals) – by MDL 13.2 million ( 5.0 percent),  while the balance of credits granted to the non-financial companies sector, which ownership is public and that of non-banking financial sector decreased by MDL 3.7 million ( 0.5 percent) and by MDL 1.9 million (0.2 percent), respectively.