Competition In The Banking System Of Republic Of Moldova

The banking system is one of the financial market segments which plays an important role in the financial circuit both at the country level and as a component of the international financial system. Developing a competitive banking system allows to avoid monopoly situations creating the possibility for each bank to be oriented to a certain range of services and products provided willing to increase continuously their quality and attractiveness. The dynamic analysis of effective competition in the domestic banking system would allow determination of factors with negative influence on the rate of participation of each bank in the total bank portfolio items, and also the possibility of reviewing the financial policies pursued in the banking sector. Study of bank system competition is a topic of interest both for financial analysts, and for authorities, given the opportunities arising: qualitative assessment of competition in the banking sector, verifying in which way the regulations in force have influenced the dynamics of competition, measuring the intensity of competition in the banking sector, detection, based on statistical analysis of competitive situation, of the main qualitative types (categories) of financial institutions active in the financial market. Moldova's banking system, according to the results obtained by analyzing the competition, has a moderate competition, even if it is obvious its increasing trend. Banking policies, trends in international financial markets, internationalization of capital markets affect the position of the banking system on domestic financial market, implicitly calculating the contribution of each bank in the formation of the portfolio: bank assets, total regulatory capital, the volume of loans and deposits.