The National Bank of Moldova published the outcomes of the National Committee for Financial Stability’s second ordinary meeting of 2025, which reviewed system-wide risks across banking, non-bank lending, insurance and capital markets as of 31 March 2025 against interim objectives in the macroprudential policy strategy. The committee assessed risks as generally low to moderate and decided to take note of the information presented, including updated identification of nationally systemic banks and related buffer calibrations. In banking, credit risk was assessed as moderate, with the non-performing loan ratio (under national prudential rules) up 0.2 percentage points from the prior quarter, while the IFRS 9 measure remained at 1.9%. Bank lending continued to grow at an accelerated pace, while liquidity and market risks were assessed as low and sectoral concentration declined slightly. The list of national other systemically important institutions was reviewed and continues to comprise four banks holding around 84.5% of sector assets, with O-SII capital buffer rates revised for two banks based on systemic importance scores. In the non-bank credit sector, risks were assessed as low, with slight portfolio growth driven mainly by household lending, improving asset quality for non-bank credit organisations but a slight deterioration for savings and loan associations; foreign currency loans accounted for 37.7% of the non-bank credit portfolio, down 0.4 percentage points quarter on quarter. Insurance sector indicators included a 10.6% year-on-year increase in gross written premiums, reinsurance of 27.6% of premiums, recoveries from reinsurers of 16.8% of paid claims, and solvency ratios of 172% for general insurance and 560% for life insurance. Capital market discussions pointed to low systemic risk, alongside a review of vulnerabilities and resilience measures for the trading infrastructure operator, and consideration of technical, operational and governance readiness for a potential move to an omnibus segregation model. The next ordinary meeting is planned for September 2025.
National Bank of Moldova 2025-07-04
National Bank of Moldova publishes Financial Stability Committee risk review and updates capital buffers for two systemic banks
The National Bank of Moldova's National Committee for Financial Stability assessed system-wide risks as low to moderate across banking, non-bank lending, insurance, and capital markets as of March 31, 2025. Key findings include moderate credit risk in banking with a slight increase in non-performing loans, low risks in non-bank credit, and a 10.6% rise in insurance gross written premiums. The committee reviewed systemic banks and adjusted capital buffer rates for two banks, while capital market risks remained low with discussions on infrastructure resilience and potential omnibus segregation.