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1. Bank equity. Components of the bank equity. Functions of the bank equity.
Total Regularity Capital (CNT). Criteria to determine the capital adequacy.
Optimization of the capital adequacy.

1.1 Bank equity.
Types of resources:
- Own resources;
These resources are created from the capital which is subscribed by the shareholders. These
resources are stable resources. They guarantee the stability of the bank. They guarantee the
efficiency of the bank activity.
- Attracted resources;
Mainly deposits, issuing of the bill of exchange, Lombard credits, overnight credits, deposits
certificates, all these are temporary resources. They manly generate risk.
1.2 Components of the bank equity
There are 4 main components:
- Social capital (volume of issued shares multiplied to the nominal value of the
shares)
- Surplus of capital (scade valoare nominal a actiunii, si daca e positive e surplus)
- Retained profit ( profit nerepartizat)
- Reserve funds
Mandatory reserve funds obligatory reserve funds, fund for the guarantee of deposits, risk
fund.
Non mandatory reserve fund fund for the reevaluation of fix assets, fund for the bank
development, other funds with special destination.
The functions of the bank:
- The main function is the protective function.
- The second function is the operational function. If the bank has a stable capital,
enough resources, this means that the bank can attract more resources: by issuing
bonds, bill of exchanges etc.
- The regulation function. The capital of the bank is regulated. The central bank is
establishing the minimal capital (200mil). The capital of the bank is regulated by
the total regulatory capital. According to the regulation is established the capital
adequacy (now its 12%, will be 18%).

1.2.1 Total Regularity Capital (CNT).
TRC=1 cap + 2 cap quota part of capital of other banks;
Cap 1 =>minimum necessary capital;
Ordinary shares;
+ preferred shares with non-fixed dividend;
+ shares with fixed dividends non-cumulative;
2

+ capital surplus; (a,b,c);
+ retained profit;
- non-completed risk fund;
- non-material assets;
Cap 2
Cumulative and partially cumulated preferred shares with non-fixed maturity;
+ capital surplus for these shares ;
+Subordinated debts with non-fixed maturity;
+Subordinated debts with fixed maturity;
Cap 2 (a,b,c,d) cap 1
Capital adequancy = (TRC/weighted to risk)*100%
Now in Moldova should be 16%.
2014- 14%; 2018=18%;
- 0% = cash of the bank, t-bonds up to 1 year;
- 20%=t-bonds more than 1 year; cash in the accounts of corresponding banks;
- 50% - bonds, state bonds, credits with guarantees ;
- 100% - buildings; equipment; non-reimbursed credits; non-guaranteed credits;
Cook norm =>8%
1.3 Optimization of the capital adequacy.

Traditional way:
- Issue shares... thats how they attract capital;
- If they issue shares there shares will give less profit;
- More voters; the influence gets smaller;
- Another way is the retained profit; (retine profitul);
Non-traditional way:
- Securitization (vanzarea datoriilor );
- Branding;