Methodological standards on interest rates
I. Data Characteristics
Classification
The National Bank of Moldova disseminates a complete range of interest rates.
1. Interest rates on monetary regulation instruments of NBM
The basic rate is the reference rate for the main short-term monetary policy operations of the NBM.
The NBM basic rate is set up by the Council of Administration of the NBM based on the analysis of a range of macroeconomic and monetary indicators .
The interest rate on overnight credits is the highest rate of the NBM rates’ corridor.
The Lombard facility was implemented in 1995. The Lombard facility is granted for a term of maximum 5 days. The Lombard facility rate is set up at the level of the basic rate adding a margin. (Starting with 08.12.2006 the rate on Lombard facility was excluded from NBM rates corridor, based on the decision of the Council of Administration of NBM no.326 of 01.12.2006)
The interest rate on overnight deposits with the NBM is the lowest rate of the NBM rates’ corridor.
2. The interest rates on NBM long-term credits
The need of determining the interest rate on long-term credits is generated by the fact that the NBM continues to serve the long-term credits extended in the period of 1993-2000 for finishing the construction of cooperative houses, based on some decisions of the Parliament of the Republic of Moldova. The interest rate on long-term credits (over 5 years) is determined according to the average inflation level for 5 years prior to the month of calculation, diminished or increased by a margin, depending upon the inflation level trend and the credit market conditions
3. Average weighted yields on government securities
The average yield on government securities is computed as the annualized average weighted yield for Treasury bills with maturities up to 1 year (nominal & effective yields) and for State bonds (effective yield) commercialized on primary market during the calendar month. Calculation formulas of the nominal yield and the effective yield on government securities are indicated in section Financial Markets.
4. Average interest rates on the money market operations
The interest rate on transactions with state securities represents the average of interest rates weighted by volumes of transactions carried out on the secondary market of state securities with maturities up to one year.
The interest rate on the REPO operations represents the average of interest rates weighted by volumes of interbank short-term REPO operations with state securities (up to 7 days, 7-14 days, 14 days-1 month, 1-3 months, more than 3 months).
The interest rate on interbank credits/deposits represents the average of interest rates weighted by volumes of short-term credits/deposits extended within the interbank market (up to 7 days, 7-14 days, 14 days-1 month, 1-3 months, more than 3 months).
5. Average interest rates on credits and deposits attracted with commercial banks
The average interest rate on interbank credits is broken down by currency (Moldovan leu and foreign currency). The rates are weighted by amount in each category.
The average interest rate on credits extended by commercial banks is broken down by currency (Moldovan leu and foreign currency), by sector (legal entities and households) and maturity (up to 1 month, 1 to 3 months, 3 to 6 months, 6 to 12 months, over 12 months). The rates are weighted by amount in each category.
The average interest rate on deposits attracted with commercial banks is broken down by currency (Moldovan leu and foreign currency), type (demand and time), by sector (legal entities and households) and maturity (up to 1 month, 1 to 3 months, 3 to 6 months, 6 to 12 months, over 12 months). The rates are weighted by amount in each category.
The average interest rate on interest bearing demand deposits is broken down by currency (Moldovan leu and foreign currency). The rates are weighted by amount in each category.
6. Average interest rates on the NBM money market operations
The interest rate on the NBM money market operations represents the average of interest rates weighted by volumes of operations conducted by NBM in the money market in the respective month.
7. Reference interbank market interest rates
Reference rate CHIBOR (Chisinau Interbank Offered Rate) means the average interbank interest rate at which contributor banks are willing to lend funds in Moldovan Lei to other banks.
Reference rate CHIBID (Chisinau Interbank Bid Rate) means the average interbank interest rate at which contributor banks are willing to borrow funds in Moldovan Lei from other banks.
The CHIBOR and CHIBID reference rates are automatically determined by the fixing Agent (Reuters company) in every working day at 11.00 a.m. local time through calculation of arithmetic average of interest rates quoted by contributor banks in breakdown by maturity – ON; 1 week; 2 weeks; 1 month; 3 months; 6 months, 12 months.
Periodicity
- Quarterly or on modification necessity: for the interest rates on monetary regulation instruments and the interest rates on NBM long-term credits.
- Daily: reference interbank market interest rates.
- Weekly: for the interest rates on interest bearing demand deposits.
- Monthly: for the other rates.
II. Data Quality
Documentation of Methodology
The methodology applied for computing the average interest rates on credits and deposits attracted with commercial banks is explained in Regulation on compiling and presentation of reports on average interest rate on credits and deposits attracted by commercial banks, which is posted and available to the public on NBM’ Web site.
The methodology applied for determining the reference interbank market interest rates is provided by Regulation on CHIBOR and CHIBID reference rates, approved by the decision of the Council of Administration of the National Bank of Moldova no. 242 of 11.08.2005, which is posted and available to the public on NBM’ Web site.
Data to Support Cross-checks and Assurance of Reasonableness.
In order to allow checking of data, a full range of interest rates in time series format is disseminated.
III. Dissemination Formats
Electronic
Internet Web site http://www.bnm.md
