.PNG)
The National Commission for Financial Markets (NCFM) has published the activity report for 2021, which shows stability in all three supervised sectors - the capital market, insurance market and non-bank credit sector.
The report is structured in 11 parts, five of which show sectoral activities: the capital market, the insurance market, the non-bank credit sector, credit bureaus and collective investment schemes, and six other parts - describe the regulator's activity: consumer protection, cooperation between local and international institutions, operational activity, strategy execution, etc.
Capital market
The sectoral analysis shows that, although it was affected by the repercussions of the pandemic crisis, the capital market recorded in 2021 an increase of the amount of issued securities. This indicator was influenced, including by the compliance measures undertaken by the joint stock companies, in the context of the provisions of the legislation on the gradual increase of the minimum share capital from 20 thousand lei to at least 120 thousand lei by 01.01.2022.
A significant event of 2021 was the issuance of bonds. For the first time on the primary segment of the capital market the first bonds issued by two local public authorities (Singera City Hall and Ceadir-Lunga City Hall) were registered, totalling 7.5 million lei. The promising start of bonds issued by local public authorities indicates the increased investor’s interest and the market's ability to offer and assimilate new financial instruments.
Insurance market
In 2021, the insurance market showed an upward trend in gross written premiums, which recorded a total value of 1.9 billion lei, with a nominal increase of 32.59% compared to the previous year. During the same period, the insurance companies paid compensations in the total amount of 662.1 million lei, registering a nominal increase of 11.02% compared to the previous year.
Likewise to the previous year, the market remained oriented towards non-life insurance, which accounted for 94.78% (93.05%, 2020) of the total volume of gross written premiums and life insurance, which accounted for 5.22% (6.95%, 2020). In 2021, compulsory insurance had a share of 44.36%, and optional insurance covered 55.64% of the volume of gross written premiums on the insurance market.
In 2021, the written premium per capita reached the level of 740.88 lei/person, being increased by 190.54 lei compared to the previous year. The penetration rate of insurance, expressed as a ratio between gross written premiums and GDP, was 0.8%, which shows an increase of this indicator compared to 2020 by 0.1 percentage points.
Non-bank crediting sector
The value of total assets held by the entire non-bank credit sector (savings and credit associations - SCAs and non-bank crediting organizations - NBCOs) increased during 2021 maintaining the same trend of recent years. As of December 31, 2021, the sector's assets were 13.6 billion lei, registering an annual growth rate of 15.74%.
As of 31.12.2021, 390 entities (163 NBCOs and 227 SCAs) held authorizations/licenses to carry out professional activity on the non-bank credit market, registering a shrink during the year of 5 entities.
At the end of last year, 4 credit bureaus had licenses to provide credit reporting services. Thus, compared to 2020, the number of credit agreements reported to credit bureaus increased by 1.72 million units. This increase is determined by the fact that, as of the end of March 2021, legislation came into force requiring non-bank crediting organizations to report to at least one credit history bureau and to exchange information with each other in order to provide creditors with the complete information regarding the credit history of the potential debtor.
The report on NCFM activity for 2021 is available on the official website of the institution - https://www.cnpf.md
