The National Bank of Moldova published its quarterly financial stability assessment for Q3 2024, concluding that the banking sector showed an adequate level of resilience to risk at end-September 2024. The financial stress index stood at 0.44, below the stress threshold of 0.57, and the overall vulnerability index was -0.64, below the vulnerability threshold of zero; direct contagion risk was assessed as low and liquidity risk as low, with stress scenarios showing no liquidity shortfalls in either domestic currency or foreign currency. Interbank contagion risk was mitigated by placements being mostly directed to foreign banks, although the interbank network was described as relatively concentrated; the credit portfolio review did not identify significant sectoral concentration. Banks’ exposure to non-bank financial institutions increased by 10.8% to MDL 3,084.2 million (4.2% of banks’ total portfolio), with all such loans classified as performing; across total loans and borrowings in the financial system, non-bank credit organisations held a 16.6% share (down 1.2 percentage points year on year) and savings and loan associations held 1.3% (down 0.2 percentage points). The bank lending survey indicated a slight easing in lending standards and a slight increase in credit demand, alongside rapid growth in household lending: new mortgage lending rose to MDL 2,070.9 million (up 93.5% year on year and 30.9% quarter on quarter) and new consumer lending to MDL 3,954.9 million (up 36.2% year on year and 16.6% quarter on quarter). Overdue loan shares fell to 2.4% for legal entities and 1.9% for individuals, while most new household loans remained within reported affordability and collateralisation ranges; the residential property price index reached 166.6% (up 0.4% quarter on quarter and 18.5% year on year).

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