The performance of the banking system in the Republic of Moldova: theoretical and practical aspects

Abstract

Bank performance is an analysis tool of great importance for bank managers, shareholders and, last but not least, for all participants in the financial markets, who, by the nature of their activity, have business relations with banks. In practice, the analysis of banking performance is outlined using a series of indicators, the size of which is given by the result of the comparison of balance sheet items. The profitability of a bank is given by attracting resources in the short term and placing them in the long term. Thus, the level of interest rates for investments would be much higher than that of short-term resources, which would generate a substantial margin between active interest and passive interest and, implicitly, a maximum profit.