The Profitability of Banks Under Shocks Caused by Non-Diversifiable Factors

Abstract

Listing the last ten years of the economic evolution of the Republic of Moldova, the banking system has a strong contribution on the development of the financial system, as well as strongly building up the resilient and robust environment, where individuals were ensured with the strong capital quality and stable and sustainable development. As we will see, during mentioned period crisis that were visible in the Republic of Moldova were generated by non-diversifiable factors, and the reaction of banks and at some point, in time of authorities were as quick as possible for mitigation of the negative effect that arise on individuals and on business areas. DOI: https://doi.org/10.53486/dri2024.33; CZU: 338.124.4:336.71(478); JEL: G01, G10, G1