Boasting an inherently profitable banking sector, the Moldovan market is not troubled by some of the typical banking concerns seen elsewhere in the world, such as overzealous lending activities, which outpace deposits, hits from foreign currency lending or a too-high non-performing loan (NPL) book.
Indeed, the average return on equity across the country’s 14 banks was 9.4% in 2013, the loan-to-deposit ratio is below 100% and most foreign currency lending to individuals is forbidden. The rate of bad loans, while higher than in many western European countries, is still below others in the central and eastern Europe region at 11.6% at the end of 2013.