Banking in Moldova Mrs. Cristina HAREA Deputy Governor Moldova – Turkey Economic Forum Istanbul, 23 March 2018

Macroeconomic situation billion USD % Ministry of Economy forecast High catch up potential Source: National Bureau of Statistics of the Republic of Moldova

Consumer Price Index (%) Target: 5% ± 1.5 p.p. Feb. 2018 2018 forecast: 3.7% 2019 forecast: 4.7% Banking crisis

Moldovan currency stabilisation EUR/MDL USD/MDL Banking crisis

Monetary conditions normalisation Current Government formed New Central Bank management 364-Days Bills First IMF mission 3-Year Bonds 91-Days Bills Banking crisis

EU-compliant LEGISLATION Recent developments in the banking system More powerful CENTRAL BANK EU-compliant LEGISLATION More resilient BANKING SECTOR Enhanced independence New technocrat management New supervision tools Central Securities Depository Basel III rules (since 2018) Payment services and e-money Bank recovery and resolution Anti-money laundering Shareholders transparency Better corporate governance Control of related parties transactions Increased Deposit Guarantee Fund

 Market access and FX regulation Foreign investors may start banking activity by: acquiring shares in an existing local bank; creating a new local bank (e.g. a subsidiary); establishing a branch of a foreign bank; No limitations on market access, no discriminatory rules, but fit and proper certification is necessary for investors acquiring at least 1% of bank’s shares. No restrictions on capital entering Moldova. No restrictions on dividends & return of capital. EU convergent rules in all fields. START  BASEL III

Commercial banks at a glance TOTAL ASSETS $ 4.6 bil.

Commercial banks at a glance 2017 Market share (%) Assets (mil. USD) Loans (mil. USD) Net income (mil. USD) ROA (%) ROE (%) MOLDOVA - AGROINDBANK 1297,87 640,22 26,79 2.19 12.93 MOLDINDCONBANK 886,14 372,84 21,27 2.46 17.83 VICTORIABANK 847,44 227,90 16,49 2.07 11.45 MOBIASBANCĂ 591,16 283,61 15,82 2.81 18.49 EXIMBANK 284,79 96,62 -3,91 -1.37 -5.21 PROCREDIT BANK 200,83 117,91 2,16 1.07 7.41 FINCOMBANK 173,69 75,97 2,13 1.30 8.18 ENERGBANK 156,38 52,50 3,18 2.08 9.44 BCR CHIŞINĂU 84,93 37,71 1,03 1.20 3.88 COMERŢBANK 83,29 31,56 1,05 1.35 5.52 EUROCREDITBANK 45,00 20,63 0,59 1.42 3.42 ~ 43% of banking assets

Selected banking data PENETRATION LOAN SEGMENTS Assets/GDP SME Deposits/GDP Retail Loans/GDP Mortgage LIQUIDITY RETURNS Loan/Deposit ratio (%) Return on equity Net profit NPL/ Loans (RHS) Short term liquidity ratio (%) Return on assets NB: GDP 2017 – forecast

Questions and answers Cristina HAREA Deputy Governor Phone: +373 22 822 606 Email: Cristina.Harea@bnm.md 1 Grigore Vieru Avenue, MD-2005 Chisinau, Republic of Moldova www.bnm.md