In November 2015, 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. decreased by MDL 134.0 million (0.5 percent) compared to October 2015 and accounted for MDL 29269.4 million. The decrease of the monetary base was determined  by the decrease of net foreign assets by MDL 255.6 million (0.9 percent). At the same time, net domestic assets increased by MDL 121.6 million (11.6 percent).

Money supply M2 Money supply M2 includes money in circulation (M0), deposits of residents in MDL and money market instruments.decreased by MDL 271.5 million during the reporting period or by 1.7 percent compared to October 2015 and accounted for MDL 38384.2 million.

At the same time Money supply M3 Money supply M3 includes money supply M2 and deposits of residents in foreign currency expressed in MDL.decreased by MDL 1095.0 million (1.7 percent) in November 2015.

The analysis of the passive components of Money supply (M3) denotes the fact that this decrease was driven by the decrease of the balance of Money in circulation M0 Money in circulation M0 represents cash released in circulation by the National Bank of Moldova, except for cash in banks and NBM vault.- by MDL 658.7 million and the total balance of deposits by MDL 436.3 million in November 2015 (Table no.1).      

Table no.1. Passive components of money supply

The balance  of  deposits  in national currency increased  by MDL 387.2 million and accounted for MDL 22847.6 million, representing a share of 47.7 percent of total deposits, while the balance of deposits in foreign currency (recalculated in MDL) decreased by MDL 823.5 million and accounted for MDL 25019.1 million (with a share of 52.5 percent) (Table no.2).

 Table no.2. Structure of depositsDeposits 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 decrease of money supply M3 in the reporting period was determined by the decrease in net foreign assets  of  the banking  system  by  MDL 911.4 million (1.8 percent) and by the decrease in net domestic assets by MDL 183.6 million (1.2 percent).

          Domestic  credit  of  the  banking  system  decreased  by  MDL 361.3 million, up to MDL 42540.4 million, due  to  the  decrease  in the balance of credits granted to economy by MDL 743.6 million, while the balance of  credits  granted  to the Government increased by MDL 382.3 million.

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). decreased  by 1.7 percent in November 2015 at the expense of the decrease of credits to economy in national currency  by  MDL 309.9 million (1.2 percent), and credits  in  foreign currency (expressed in MDL) by MDL 433.7 million (2.2 percent) (Table no.3). At the same time, the credits to economy in foreign currency, expressed in USD, have decreased by USD 25.2 million, USD during the reporting period.

Table no.3. Structure of credits granted to economy

Negative evolution of the balance of credits granted to economy in national currency was determined by the decrease of credits granted to non-financial companies sector, which majority ownership is private by MDL 173.8 million (1.1 percent), balance of credits to non-banking financial sector and other resident sectors (including individuals) by MDL 15.0 million (2.3 percent) and by MDL 131 million (1.8 percent) respectively, while the balance of credits granted to non-financial companies sector, which majority ownership is public increased by MDL 10.1 million (1.1 percent). 

At the same time, the decrease of the balance of credits granted to economy in foreign currency (expressed in MDL) was influenced by the reduction in balance of credits granted to non-financial companies sector, which majority ownership is public by MDL 52.5 million (5.8 percent), the non-banking financial sector and the non-financial companies sector, which majority ownership is private by MDL 14.2 million (1.6 percent) and by MDL 372.4 million (2.2 percent) respectively, while the balance of credits granted to other resident sectors (including individuals) increased by MDL 5.3 million (1.6 percent).

Statistics