The appearance of the credit is closely related to the appearance of the commercial banks, the mobilization of the monetary disposals on the market and their efficient placement to the funds solicitors is being accomplished through credits. The credit giving can be generally described as the process through which a certain value is loaned to a potential debtor which has a certain activity, accepting a financial risk to the possibility that that person/entity may not be capable to fulfill their obligations in the future.bank credits, evolution, rating, the balance credit/deposits, weight of credits

ENACHI Stella

HANCU Lilian

PÂRTACHI Ion

English

Research Papers in Economics

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Statistical approaches of the credit 
 and the banking rating in the national economy 
 
Abordări statistice ale creditului şi ratingului bancar 
în economia naţională 
 
Professor PÂRŢACHI Ion, Ph.D. 
Academy of Economic Studies of Moldova 
Chişinau, Republic of Moldova 
e-mail: ipartachi@gmail.com 
Lecturer HANCU Lilian, Ph.D. 
Academy of Economic Studies of Moldova 
Chişinau, Republic of Moldova 
ENACHI Stella 
Academy of Economic Studies of Moldova, 
Chişinau, Republic of Moldova 
 
 
 
Abstract 
The  appearance  of  the  credit  is  closely  related  to  the  appearance  of  the 
commercial  banks, the  mobilization  of the  monetary  disposals  on  the market  and  their 
efficient placement to the funds solicitors is being accomplished through credits. The credit 
giving can be generally described as the process through which a certain value is loaned to 
a potential debtor which has a certain activity, accepting a financial risk to the possibility 
that that person/entity may not be capable to fulfill their obligations in the future. 
 
Keywords: bank credits, evolution, rating, the balance credit/deposits, weight of 
credits 
 
 
Rezumat 
Apariţia creditului este strâns legată de cea a băncilor comerciale, mobilizarea 
disponibilităţilor monetare de pe piaţă şi plasarea lor eficientă către solicitanţii de fonduri 
se realizează prin intermediul creditării. Acordarea unui credit poate fi în general descrisă 
ca fiind procesul prin care o anumită valoare este împrumutată unui potenţial debitor care 
desfăşoară o anumită activitate, acceptîndu-se un risc financiar asupra posibilităţii ca acea 
entitate/persoană să nu fie capabilă în viitor să-şi achite obligaţiile. 
 
Cuvinte-cheie:  credite  bancare,  evoluţie,  reiting,  raportului  credite/depozite, 
ponderea creditelor 
 
JEL Classification: E51, G21, G24, Y10 Management Management Management Management    
 
 
 
 
 
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Introduction 
 
n an international level the banking system is dynamic because the 
banks are consolidated through merges, acquisitions, but also on 
the  base  of  the  bankruptcy  of  other  banking  societies.  The 
concentration of the financial-banking sector has become a current phenomenon, 
while  in  the  Republic  of  Moldova  it  is  a  broadening  process.  Given  these 
conditions,  in  the  banking  universe,  numerous  risks  have  an  impact  over  the 
profitability. These multiple sources of the risk make the number of the definitions 
given by the economists regarding the bank risk bigger. In this universe where the 
quantitative  administration  of  risks  has  a  very  important  function,  the  generic 
concepts  are  more  frequently  used.  Different  types  of  risks  must  be  carefully 
defined, and these definitions are the basis for the quantification of risks and the 
implementation of an efficient system for their administration (Green & Lynch, 
1999). 
 
Bank loan 
 
The credit loaning is an important function of the banks. The general level 
of risks in the credit that a bank is ready to cover represents an executive decision 
and reflects the managerial attitude (Basno & Dardac, 1999). It regards the bank’s 
obligations towards its depositaries and its share holders. 
The credit as an expression of the redistribution relationships represents an 
approach  which  starts  from  the  economic  contends  specific  for  the  credit, 
respectively the transfer of one part of the social product from some participants of 
the  economic  circuit  to  the  other  participants  of  this  circuit  (Basno,  Dardac, 
Floricel,  2003).  Unlike  other  relations  of  redistribution  of  income,  for  example 
taxes,  which  have  a  definitive  feature,  the  credit  is  a  particular  form  of  these 
relations,  through  its  temporary  feature  of  the  transfer  in  the  economy.  The 
complete  definition  of  the  credit  can  be  accomplished  through  taking  into 
consideration and the correlation of these three approaches, which can lead to the 
following phrasing: 
The credit represents an economic category which expresses relations of 
repartition of a part of the GDP or the national revenue, through which there are 
mobilized and distributed the disposals of the economy and there are created new 
means of payment, for the purpose of satisfaction of some capital needs and the 
accomplishment of certain objectives of the economic policy (Dardac & Vascu, 
1999; Turliuc & Corbiş, 1997). 
The bank has powerfully balanced businesses. The shareholders’ capital is 
usually up to only 4-6% of the total assets of the bank. Thus any growth, no matter 
hoe modest of the rate of non performance credits in the credit portfolio will cause 
a dramatic decline of the revenues returned to the shareholders. Also, a high level 
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of non profitable credits can damage a lot of the capital which is the basis of the 
bank’s assets, just as easily as it can damage the public trust in the future viability 
of the bank. Following the path of the global economy’s tendencies, the area of the 
banks’ activities has extended a lot on the national markets and the international 
ones. The financial markets have become more fragile, more exposed to the hazard. 
This fact has lead to a focused increase of uncertainty and consequentially to the 
multiplications of the risks specific to the banking institutions. 
The numerous events have shown that the problems that banks deal with 
result from the risk increase. This happens because the future evolution of assets 
and  the  cost  of  expenses  can  not  be  predicted  properly.  The  future  evolutions 
depend on the future events such as inflation, the monetary policy, and changes in 
the net domestic product. The basis of the problems which banks are dealing with 
is the micro and macroeconomic factors. These factors show the importance of risk 
because risk administration represents the essence of banking activity and the main 
problem  they  are  dealing  with.  Other  economists  consider  that  risks,  which’s 
apparition makes a bank become unsolvable, depend on the variation of the level of 
income forecasted to be obtained and the variation of the expenses covered by the 
income (Isaic- Maniu, 2000). 
 
The evolution of credits and deposits in banking 
system of Republic of Moldova 
 
The credit process at the bank system level and also the depositing activity 
of the banking system have an positive evolutionary feature, so that if the sum of the 
credits for the year 2008 has increased by 4019.22 thousand lei compared to the year 
2007, then the sum of deposits in the year 2008 has increased by 4091.97 thousand 
lei  compared  to  the  year  2007.  Still,  analyzing  the  annual  balance  of  total 
credits/deposits for the years 2002/2008, we can observe the evolution from Figure 1. 
This fact can also be  explained partially by the dynamic of the rate of 
interest for the credits and deposits for the physical and judicial entities. Thus, if 
the modifications of the interest rates for the credits of the physical and judicial 
entities during the last years have registered moderate increases, then the interest 
rates for the deposits for the physical and judicial entities have registered more 
significant increases, attracting deposits in the last years. 
In  the  year  2008  the  average  interest  rate  for  lei  credits  has  increased 
compared to the year 2007 by 3.55%, while the average interest rate of the lei 
deposits has increased in the year 2008 by 4.04% compared to the previous year. 
We can also notice that in the year 2008 the interest rate modification of the credits 
and deposits offered in foreign currency is more visible compared to the previous 
year. So, in the year 2008 the average interest rate of the foreign currency credits 
has  increased  by  3.9%  compared  to  the  year  2007,  the  biggest  “jump”  of  the 
interest rate in the 2004-2008 period, the increase being more prominent in the case Management Management Management Management    
 
 
 
 
 
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of the foreign currency deposits, these increasing in 2008 compared to 2007 by 
5.6%. We can easily notice that the average interest rate of the credits and deposits 
in foreign currency have a growing rhythm more visible in the year 2008 compared 
to the growing rhythms of the interest rates of the previous year, a fact that can be 
partially  explained  by  the  defensive  policy  of  the  banking  sector  regarding  the 
credit portfolio approached in 2008, which was correlated to an acerb promotion of 
the banking deposit products. 
 
0
5000
10000
15000
20000
25000
30000
2002 2003 2004 2005 2006 2007 2008
m
i
l
.
 
l
e
i
0,00
0,10
0,20
0,30
0,40
0,50
0,60
0,70
0,80
0,90
1,00
Total Credite Total Depozite Tc/Td
 
 
Figure 1. The evolution of credits, deposits and the balance credits/deposits for the 
years 2002-2008 
Source: Elaborated by the author based on the annual report regarding assets, credits, 
obligations and capital of the banking system of the Republic of Moldova (BNM, 2009) 
 
 
Also, studying the average interest rates of the interests for the physical 
and judicial entities in lei and foreign currency we can notice a stabilization in the 
years 2007 and 2008 of the interest rates for the credits offered in foreign currency, 
so  that after  an  almost  radical increase  from  the  year  2006 by 20.27%  for  the 
credits  offered  in  foreign  currency,  the  years  2007  and  2008  have  been 
characterized by a stability of the interest rates these being of 14.33% in the year 
2007 and 15.87% in the year 2008. 
The major role of the supervising authorities is the one of preventing the 
systemic risk through the promotion of an efficient banking supervision which can 
ensure the realization of the stability and viability of the banking system. In this 
sense  has  been  imposed  the  necessity  of  implementing  the  Uniform  System  of 
Bank Credit CASMPL. The system consists of an efficient work instrument for the 
evaluation of the banking institutions with the purpose of identifying in an incipient Management Management Management Management    
 
 
 
 
 
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phase the inefficient banks under a financial and operational aspect or the banks 
that manifest adverse trends, soliciting an increased attention from the supervising 
authorities.  
 
Bank rating 
 
According  to  the  regulations  of  the  NBM  and  the  international 
classifications  of  the risk  categories,  the bank rating  is  a  determining  factor in 
establishing the credibility of a crediting institution and respectively contributes to 
the banks’ capacity to be perceived as a crediting agent who is efficient and secure. 
According  to  the  efficiency  coefficients,  the  agency  “Estimator  VM”  has 
elaborated “The Classification of Commercial Bank Efficiency in the Republic of 
Moldova” published annually. The classification is based on the capital component 
and the total rotation of assets. In the year 2007 the first 5 banks in the efficiency 
classifications have been: Moldova Agroindbank, Economies Bank, Victoriabank, 
Mobiasbanca, BCR Chisinau. In the year 2008, the classification has placed in the 
first 5 places the banks: Moldova Agroindbank, Victoriabank, Economies Bank, 
Moldinconbank, Eximbank SA Gruppo Veneto Banca.  
The bank rating is a significant component in determining the credibility of 
crediting, the credits of the banks with a higher rating having a significant weight 
in  the  whole  banking  system,  thus  increasing  in  the  year  2008  by  7.70%  and 
reaching 64.86% from the total of given credits in the year 2008, as follows. 
 
The weight of the credits in the banking system according to the bank rating  
in the years 2007 – 2008 (%) 
Tabel 1 
Rating   2007  2008  2008/2007 
Rating 1  
(2007,2008:  Moldova Agroindbank)  22.83  20.35  -2.47 
Rating 2  
(2007: Banca de Economii; 2008: Victoriabank)  8.00  14.13  6.13 
Rating 3 
(2007: Victoriabank;  
2008: Banca de Economii)  13.61  8.04  -5.57 
Rating 4 (2007: Mobiasbanca; 
2008: Moldinconbank)  7.77  12.93  5.16 
Rating 5 (2007: BCR Chisinau; 
2008: Eximbank)  4.94  9.39  4.45 
Total weight of banks according to rating  57.16  64.86  7.70 
Other banks  42.84  35.14  -7.70 
Total Banks  100.00  100.00  - 
 
Source: Computations made by the author based on the Classification of Commercial Bank 
Efficiency in the Republic of Moldova (EVM Group, 2007), the Bank Financial Reports, 
annual report regarding assets, credits, obligations and capital of the banking system of the 
Republic of Moldova (BNM, 2009) Management Management Management Management    
 
 
 
 
 
Economia. Seria Management        Vol.12, Nr. 2/2009 
 
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The  uncontested  leaders,  the  banks  situated  on  the  first  3  positions 
according  to  the  bank  rating  in  the  years  2007  and  2008  remain  Moldova 
Agroindbank, Economies Bank and Victoriabank, occupying leader positions in the 
top of bank efficiency, but as we notice not the biggest weight in the bank system 
of the Republic of Moldova. 
Also we notice that although totally the banks placed in the places 1-5 
according to the bank rating have a weight of 64.86% in the total of credits in the 
bank system, the bank with the 1 rating from this classification (unchanged leader 
Moldova Agroindbank) has registered a decrease of 2.47% in the weight of credits 
in the year 2008, occupying though an important market sector in the creditary 
domain of 20.35% as to 22.83% in the year 2007. It is  also notable the  credit 
modification of the banks with the rating 2 and 3. Although the weight in the credit 
sector has registered an increase for Victoriabank and the Economies Bank in the 
year 2008, the weights growing by 0.52% for Victoriabank and respectively by 
0.04% for the Economies Bank, the mutual changes of rating positions determine a 
weight modification according to the bank rating of 6.13% for the rating 2, and a 
decrease of 5.57% for the rating 3. The weight changes for the years 2007 and 
2008 can be observed in Figure 2 and Figure 3. 
 
 Moldova Agroindbank
Banca de Economii
Victoriabank
Mobiasbanca
BCR Chisinau
Alte Banci
 
Figure 2. The weight of the credits given by the first 5 banks according to the bank 
rating classification in the year 2007 
 
We notice that in the year 2007 the weight of other banks with an efficiency 
rating smaller on the credit market is 42%, a fact that can be explained by the 
market segments of the last 2 banks according to the rating of approximately 8% 
and  respectively  5%  for  Mobiasbanca  and  BCR  Chisinau.  Still,  in  average,  we 
notice that the other 10 banks with a smaller rating have a credit weight by 4.2% 
smaller than the most efficient banks declared officially. 
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Moldova Agroindbank
Victoriabank
Banca de Economii
Moldinconbank
Eximbank
Alte Banci
 
Figure 3. The weight of the credits given by the first 5 banks according to the bank 
rating classification in the year 2008 
 
 
The increase if the market segments of the banks situated on the places  
4 and 5 is due first of all to the change of the banks on these places, in the year 
2008  the  new  banks  becoming  Eximbank  Gruppo  Veneto  Banca  and 
Moldoinconbank, a fact that has caused a weight of the other banks on the bank 
market of 36% decreasing by 6% compared to 2007. 
Worth mentioning is the fact that although Mobiasbanca does not occupy a 
position in the top 5 of bank efficiency, the market segment owned by it in the 
credit market  in  the  year  2008 is 9.03%, increasing by 1.26% compared to  the 
previous  year,  which  confirms  the  fact  that  although  the  bank  efficiency  has 
decreased significantly, the rest of the components of the bank rating CASMPL 
have  been  maintained  and  even  improved,  contributing  to  an  increase  of  credit 
products  diversity  and  respectively  a  market  quota  in  the  credit  domain.  An 
essential factor which contributes to the growths of sums of credits offered by the 
banks in the bank system is the publicity factor, so that an aggressive promotion of 
credit  products  and  international  partnerships  in  obtaining  funds  for  credit  will 
contribute to a significant growth of the weight of the credits on the bank markets. 
We  could  say  that  the  bank  system  as  a  whole  is  susceptible  to  publicity  and 
significantly any change of rating will affect directly the performances of the bank 
in the loaning plan. 
Also, based on the analysis of the credit risk, can be studied the evolution 
of the risk fund at the national level as a process that corresponds to the rating 
practices, given the fact that Moldova is a part of the states with a bank rating 
Supervised according to the international rating company Fitch International. So, at 
the same time as the evolution of bank rating, there is taken into consideration the 
credit rating of the country, which also includes as part of analysis the risk fund at a 
national level. Management Management Management Management    
 
 
 
 
 
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Conclusion 
 
Of course the evolution of the risk fund corresponds to the evolution of credit 
sum offered by the banks to their clients, but a sudden evolution of the risk fund 
determines  an  increased  risk  category  evaluated  by  the  commercial  banks  of  the 
Republic of Moldova. Thus, comparing the increase by 19.36% of the credits given in 
the year 2008, compared to the year 2007, the increase of the risk fund of 37.63% in 
the year 2008 as to the year 2007, indicates a worsening of the credit rating of the 
enterprises, so that the placement of the credits given to these is made according to 
more rigorous risk categories, respectively based on a tougher bank rating, or a higher 
rating mark (in the case of the NBM classification the mark 2 or 3). 
 
 
References 
 
Basno, C., Dardac, N., & Floricel, C., (2003). Currency, Credit, Banks. The Didactic and 
Pedagogic Publishing House, Bucharest 
Basno,  C.,  &  Dardac,  N.,  (1999).  Bank  Risks,  Monitorised  Prudential  Demands.  The 
Didactic and Pedagogic Publishing House, Bucharest 
BNM, (2009), Financial indicators on the banking system of the Republic of Moldova -
Retrieved  on  May  2009  for  each  year  between  2002  and  2008,  at: 
http://www.bnm.md/en/financial_indices_of_bank_system/ 
Dardac, N., & Vascu, T., (1999). Currency and Credit. Module 1, Bucharest  
EVM Group, (2007). Situatie stabila in cursa eficientei bancare. Retrieved on May 2009 at: 
http://www.evm.md/news/Ro/2007/12/05/Situate stabila in cursa eficientei bancare.html 
Green,  S.,  &  Lynch,  B.,  (1999).  Financial  analysis  and  risk  in  credit.  Editura  Expert, 
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Isaic-Maniu,  I.,  (2000).  The  Measurement  and  the  Statistic  Analysis  of  the  Risk  in  the 
Economy. Editura ASE, Bucharest 
Turliuc, V., & Corbiş, V., (1997). Currency and Credit. Ankarom, Bucharest 
 
 
 
 
 

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