The National Bank of Moldova published an account of the extended meeting of the National Committee for Financial Stability in Chișinău on 15 April 2025, where members reviewed end-2024 financial stability risks across banking, non-bank lending, insurance and the capital market and took note of the assessments. In banking, credit risk was assessed as moderate, with the credit-to-GDP ratio rising above its long-term trend, while the non-performing loan ratio remained at a historical minimum. Slight easing in lending standards, alongside lower funding costs, stronger competition and higher demand, was linked to faster credit growth, particularly for households, while liquidity and market risks were considered low and systemic concentration risks remained low. For non-bank lenders and savings and loan associations, overall risk levels were not found to have increased, non-bank credit-to-GDP reached 5.2% in 2024, asset quality improved, and foreign-currency lending by non-bank credit organisations rose to 38% of total lending, lifting the sector’s aggregate foreign exchange position. In insurance, gross written premiums increased by 10.8% year on year, liquidity was described as adequate, and solvency ratios stood at 175% for general insurance and 655% for life insurance against a requirement of at least 100% plus a 10% additional safety margin, while reporting processes and technical provisions were discussed in the context of alignment with Solvency II and IFRS 17. The capital market review highlighted low systemic risk from authorised investment activity but identified prudential vulnerabilities related to the trading infrastructure operator. The committee signalled it will publish more extensive and detailed communications in line with recent International Monetary Fund recommendations in the National Bank of Moldova’s transparency evaluation report. The next ordinary meeting is planned for June 2025, subject to the availability of data from supervised entities.

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