National Bank of Moldova withdraws BCR Chișinău licence after absorption by Victoriabank, leaving 10 licensed banks

The National Bank of Moldova published banking sector financial and prudential indicators for the first quarter of 2025 and confirmed that, by an Executive Committee decision dated 13 March 2025, it withdrew the banking licence of Banca Comercială Română Chișinău S.A. in connection with its absorption by B.C. VICTORIABANK S.A., leaving 10 licensed banks operating in Moldova as at 31 March 2025. The data show expanding balance sheets and stronger profitability, alongside a rise in non-performing loans and a lower sector capital position. Total assets rose 1.3% during the quarter to MDL 172,603.7 million, with loans and advances at amortised cost accounting for 50.8% of assets and the gross (prudential) loan book up 8.6% to MDL 87,805.6 million, driven mainly by lending for property purchase/construction, trade and consumer credit. Deposits increased 0.8% to MDL 130,141.3 million as retail deposits grew 1.8% to MDL 77,318.9 million, while corporate deposits fell 0.6% to MDL 52,715.2 million and foreign-currency deposits declined 1.6% to MDL 45,595.3 million. The non-performing loan ratio increased by 0.2 percentage points to 4.3% (MDL 3,735.0 million) even as overdue loans fell 2.0% to MDL 1,516.5 million. Sector profit rose 27.8% year on year to MDL 1,040.6 million, supported by higher interest and fee income and lower interest expenses, with return on assets at 2.3% and return on equity at 14.7%. Liquidity indicators remained above regulatory thresholds, although the sector liquidity coverage indicator fell to 291.1%. Total own funds decreased 2.8% to MDL 21,837.4 million, a decline attributed to the withdrawal of BCR Chișinău’s licence, and the total own funds ratio fell to 24.6% as total risk exposure amount increased by MDL 3,578.1 million. Compliance with the total own funds ratio, including capital buffers, was maintained across all banks. Large exposure and affiliated-party exposure indicators were met at 31 December 2024, while one bank exceeded the 35% market dominance threshold for retail deposits (35.6%) and assets (36.4%). A 9 January 2025 decision amending the capital buffers regulation, in force from 16 February 2025, raised the maximum other systemically important institution buffer that the National Bank of Moldova may set from 2% to 3% and added rules on using Common Equity Tier 1 capital to meet the combined buffer requirement in relation to own funds requirements for risks linked to excessive leverage, aligning the framework with changes introduced by Directive (EU) 2019/878.