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20.10.2021

Developments in loan and deposit markets in September 2021



Loans market

In September 2021, new loans extended1 by banks totaled MDL 4,481.5 million, recording an increase of 36.2% compared to September 2020.

The structure of loans granted (Chart 1) in the reporting month evolved as follows:

  • 73.0% represent loans extended in domestic currency, which totaled MDL 3,270.5 million (+16.9% compared to the previous month and +54.2% compared to September 2020);
  • 26.1% represent loans extended in foreign currency, which, recalculated in MDL, totaled MDL 1,169.6 million (-2.5% compared to the previous month and +11.0% compared to September 2020);
  • 0.9% represent foreign-currency-linked2 loans, which amounted MDL 41.4 million (+49.5% compared to previous month and -64.2% compared to September 2020).

Chart 1
Dynamics of new loans extended, million MDL (upper chart) and the annual growth rate of new loans extended by banks, % (lower chart)

Source: NBM report on average rates and volumes of new loans and new deposits attracted for September 2021.

In terms of maturity (Chart 2), loans with maturity ranging from 2 to 5 years recorded the highest demand of 57.3% of total extended loans. The share of businesses’ loans with this term constituted 37.6% in total amount of extended loans.

Chart 2
New loans extended by maturity and their structure, %

Source: NBM report on average rates and volumes of new loans and new deposits attracted for September 2021.

Domestic currency loans (Chart 3) were mainly represented by loans extended to individuals (46.9%) and to non-financial commercial companies (47.4%). Within loans to non-financial commercial companies, loans to trade dominated (49.4%).

Foreign currency loans were mainly requested by non-financial commercial companies (88.9%), and the largest share (54.8%) belongs to trade.

Chart 3
Domestic currency loans by sectors, %

Source: NBM report on average rates and volumes of new loans and new deposits attracted for September 2021.


The average nominal interest rate on new loans extended in domestic currency constituted 6.84%, on loans in foreign currency - 4.06%, and on foreign-currency-linked loans - 4.17%.

Compared to the previous month, the average rate evolved as follows (Chart 4):

  • on domestic currency loans it increased by 0.06 percentage points (p.p.). Businesses received their loans at an average rate of 8.19%, individuals performing an activity3 – at a rate of 9.10%, while individuals – at a rate of 5.29 %;
  • on foreign currency loans it increased by 0.17 p.p. Businesses received their loans at an average rate of 4.05%, individuals performing an activity4 – at a rate of 4.11% and individuals – at a rate of 7.00%.
  • on foreign-currency-linked loans it decreased by 0.27 p.p. Businesses received their loans at an average rate of 3.92% and individuals – at a rate of 4.90%. Individuals performing an activity did not apply for this type of credit.

Compared to the similar period of the previous year, the average nominal interest rate on domestic currency loans decreased by 1.04 p.p., on foreign-currency-linked loans - by 0.07 p.p., while the average nominal interest rate on foreign currency loans did not change.

Chart 4
Weighted average nominal interest rates on new loans, %

Source: NBM report on average rates and volumes of new loans and new deposits attracted for September 2021.

The volume of domestic currency loans extended to individuals, increased in September 2021 by 5.2% as compared to the previous month and totaled MDL 1,534.5 million (Chart 5). The average rate on these loans decreased by 0.15 p.p.

Chart 5
Domestic currency loans extended to individuals

Source: NBM report on average rates and volumes of new loans and new deposits attracted for September 2021.

From the perspective of the purpose of newly extended loans, consumer loans held the largest share (63.9%), and were extended with an average rate of 4.38% (-0.19 p.p. compared to the previous month and -2.77 p.p. compared to September 2020).

The average rate on mortgage loans decreased by 0.10 p.p. compared to the previous month and increased by 0.09 p.p. compared to September 2020.

It should be noted, that 98.5% of total mortgage loans were extended in domestic currency. Consumer loans, also, were mainly extended in domestic currency (99.8% of total consumer loans).

Domestic currency loans (Chart 6) with maturity from 2 to 5 years, recording the highest demand, were extended at an average interest rate of 6.32% (8.25% - on businesses loans, 9.00% - on individuals performing an activity loans, and 4.19% - on individuals’ loans).

Chart 6
Average rates on extended loans, by maturity, %

Source: NBM report on average rates and volumes of new loans and new deposits attracted for September 2021.

The highest average rate on domestic currency loans was registered on loans with maturity up to 1 month, and amounted 9.47% (businesses loans - 9.45%, loans of individuals performing an activity – 12.89%, while individuals’ loans - 6.35%).

Loans in foreign currency with terms of 2 to 5 years (which had the highest volume in the reporting month) were extended with an average rate of 4.00% (businesses loans – 4.00%, loans of individuals performing an activity – 3.80%, while individuals’ loans – 7.04% (Chart 6)).


Deposits market

In September 2021, the new term deposits totaled MDL 2,804.1 million, increasing by 4.3% compared to September 2020 (Chart 7).

Chart 7
Dynamics of term deposits (upper chart) and change from the previous month (lower chart), million MDL

Source: NBM report on average rates and volumes of new loans and new deposits attracted for September 2021.

The volume of new term deposits constituted:

  • in domestic currency – MDL 1,742.8 million (+15.0% compared to the previous month and -3.4% compared to September 2020);
  • in foreign currency, recalculated in MDL – MDL 1,061.3 million (-3.4% compared to the previous month and +20.0% compared to September 2020).

The share of deposits attracted in domestic currency constituted 62.2%, of those in foreign currency - 37.8%.

Individuals’ deposits (Chart 8) represented the largest share of total deposits – 71.8% (where 39.4% represent domestic currency deposits and 32.4% - foreign currency deposits).

Chart 8
New term deposits placed by maturity and their structure, %

Source: NBM report on average rates and volumes of new loans and new deposits attracted for September 2021.

In terms of maturity, the highest demand was recorded for deposits with terms from 2 to 5 years, which held 35.0% of total term deposits (25.3% - individuals’ deposits).


The average interest rate on domestic currency term deposits constituted 3.19%, and on those in foreign currency - 0.36%.

Chart 9
Weighted average rates on new term deposits, %

Source: NBM report on average rates and volumes of new loans and new deposits attracted for September 2021.

Compared to the previous month, the average rate evolved as follows:

  • on domestic currency deposits it increased by 0.06 p.p. Businesses placed their deposits at an average rate of 2.42%, individuals performing an activity – at a rate of 2.31%, while individuals – at a rate of 3.63%;
  • on foreign currency deposits it decreased by 0.08 p.p. Businesses placed their deposits at an average rate of 0.41%, individuals performing an activity individuals – at a rate of 0.50%, while individuals – at a rate of 0.36% .

Compared to September 2020, the average interest rate on domestic currency deposits decreased as well as that on foreign currency deposits (Chart 9).

Domestic currency deposits with maturity from 2 to 5 years, holding the highest demand (35.0% of total deposits in domestic currency), were attracted with an average interest rate of 3.82% (businesses deposits were attracted with an average rate of 3.03%, while and individuals’ deposits - at a rate of 4.19% (Chart 10)).

Chart 10
Average interest rates on new term deposits, by maturity, %

Source: NBM report on average rates and volumes of new loans and new deposits attracted for September 2021.

In the case of foreign currency deposits, the largest share (39.3 percent) is held by those with terms of 6 to 12 months, which were placed at an average interest rate of 0.36 percent (businesses placed their deposits at a rate of 0.37%, individuals - at a rate of 0.36%).

The highest average rate on domestic currency deposits was recorded as follows:

  • on businesses deposits with terms from 1 to 2 years (3.56%);
  • on deposits of individuals performing an activity - from 6 to 12 months (2.75%);
  • on individuals’ deposits - over 5 years (4.81%).

The highest average rate on foreign currency deposits was recorded as follows:

  • on businesses deposits with terms from 1 to 2 years (0.75%);
  • on deposits of individuals performing an activity - from 1 to 2 years (0.50%);
  • on individuals’ deposits with terms from 1 to 2 years and from 2 to 5 years (0.47%).


Interest rate margin on domestic currency transactions constituted 3.65 p.p., while on those in foreign currency amounted – 3.70 p.p.

Chart 11
Bank interest margin, p.p.

Source: NBM report on average rates and volumes of new loans and new deposits attracted for September 2021.

The interest rate margin on operations in domestic currency did not change compared to the previous month, but it decreased by 0.43 p.p. compared to September 2020 (Chart 11).

The interest margin on foreign currency transactions increased by 0.25 p.p. compared to the previous month and by 0.34 p.p. compared to September 2020.

 


1. The data of this report is presented according to the Guidelines on Preparation and Presentation of Reports on Interest Rates applied by banks in the Republic of Moldova, approved by Decision No 331 of 1 December 2016 of the Executive Board of the NBM, Official Monitor of the Republic of Moldova, No 441-451 of 16 December 2016, with further amendments and completions.

2. Loans foreign-currency-linked, according to the Regulation on the open currency position of the bank, approved by Decision of the Executive Board of the National Bank of Moldova No 126 of 28.11.1997, Official Monitor of the Republic of Moldova no. 112-114/198 of 14.10.1999, with further modifications and completions, refer to the assets which balance, according to the conditions established in the relevant contracts concluded by the bank, shall be modified depending on the evolution of the exchange rate of Moldovan currency against the attached exchange rate.

3. Individuals performing an activity, according to the Guidelines on the drafting by the licensed banks of the Report on monetary statistics, approved by Decision of the Executive Board of the NBM no. 255 of 17.11.2011, Official Monitor of the Republic of Moldova no. 206-215 of 02.12.2011, with further modifications and completions, work in associations without legal personality and are producers of goods and/or services for market, and namely, individual enterprises, farms, patent holders, notaries, lawyers, bailiffs, etc.”

4. Individuals performing an activity, according to the Guidelines on the drafting by the licensed banks of the Report on monetary statistics, approved by Decision of the Executive Board of the NBM no. 255 of 17.11.2011, Official Monitor of the Republic of Moldova no. 206-215 of 02.12.2011, with further modifications and completions, work in associations without legal personality and are producers of goods and/or services for market, and namely, individual enterprises, farms, patent holders, notaries, lawyers, bailiffs, etc.”

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