How we can stimulate the lending activity and bring back trust in the bank-customer relationship ?
How we can stimulate the lending activity and bring back trust in the bank-customer relationship ?

Author(s): Dumitru Pintea
Subject(s): Financial Markets
Published by: EXPERT-GRUP Centrul Analitic Independent
Keywords: banking sector in Moldova;
Summary/Abstract: The banking sector is the major component of the national financial system. Its main function is to allocate efficiently the financial resources to the economy by matching those who have such free resources with the ones who need resources for investment. A sustainable intermediation is based on the banks’ trust in investors, on the one hand, and on investors’ trust in the viability of the economy, on the other hand. This “trust” was severely affected by the bank crisis of 2014-2015, and the presence of some macroeconomic uncertainties in 2016 led to a high volatility of banking activity and lending process in particular. // The crisis revealed the erratic and risky lending practices of some banks, their focus on immediate profits, lack of consistency, or concentrated exposure to related economic groups. As a result of these lending policies, a significant share of potential clients moved towards other sources of financing or were determined to postpone or even cancel their planned investment projects.

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