Interview with Galina Braniște, Director of the maib "Ștefan cel Mare" Branch
Galina, hello. Two years ago, I interviewed you, and we have seen each other in the meantime. Since then, I have opened an account for my company in the branch you manage. So, let me ask you about the news in your business.
The main news is that we have launched the third maib corporate bond issue under the second program.
Under the second program, if I am not mistaken, there are ten issues of 100 million MDL each. And the first issue took place on December 4 last year.
That's right. The first two issues were successful, and the third issue started on February 29, with the last day of sale being March 19.
I'm guessing it's an active period now...
As a maib branch, we always have something to offer the customer that adds value. Our range of services is vast and flexible, tailoring our services to the needs of each customer. But, of course, corporate bonds are an extraordinary product. I am proud to work at a bank whose reputation and financial performance allow us to issue corporate bonds because this is a unique offering for the Moldovan banking market.
What makes bank bonds attractive to the customer? A higher interest rate?
this. Now, when the deposit rate is 3.25% annually, bond payments are 4.69% annually. However, bonds are attractive not just because of the interest rate but primarily because of the differences from standard deposits.
Imagine a practical situation. I am your customer, and I would like you to explain the advantages of investing in bank bonds. What is the most important thing you would point out?
I would start with the flexibility of access to money.
What do you mean?
Well, the nominal value of a bond is 20,000 MDL. If you decide to deposit 100,000 MDL in a bank for a sufficiently long period, let's say you want to do so. But after a while, you need some of the money. If it was a deposit, you would have to terminate the whole contract early, leading to a recalculation of interest and financial losses compared to what you planned.
As for bonds, they can only sell one or two and it has no effect on the income from the rest of the bonds?
Exactly. In addition, you can either sell the bonds on the stock market to a third party or request early redemption of the bonds from maib. Under the terms of the issue, we guarantee the redemption of the bonds of a nominal value of up to 5 million MDL. And if you sell them early for a higher amount, we will help you find a buyer for them, as the bonds are traded on the secondary securities market. Remember that bonds can be pledged and act as collateral for a loan. So you have a whole range of possibilities. It's up to you to choose the most favourable option for you.
But what about the principle of interest accrual?
Floating rate. It is calculated as the weighted average rate on new deposits attracted in domestic currency from the entire banking sector for 6 to 12 months. This rate is monitored by the National Bank of Moldova and its statistics are published on the NBM website.
This indicator represents the base rate. Is there a margin?
Yes. It ranges from "-1" to "+1.5" per cent, depending on market conditions. Now, the margin is on the plus side. If there are fluctuations, you decide whether to keep the bonds or exchange them for another financial tool.
Yes, everything is transparent. And the flexibility of bonds ensures freedom of choice. Now I understand even better why maib bond issues can be closed even earlier than planned because customers can redeem the issue not in twenty days but ahead of schedule.
So, we've talked about bonds, but that's not all the news in your business, is it?
Surely. I would like to mention one of the most innovative changes in our activity.
What's that?
In the past, when a customer came to the maib branch for a service, we offered it, of course, we could offer another product on top of it. But now we always have a special offer ready for every client, even if they are not yet our client when they come to the bank.
What is this special offer?
Maib, as a bank, has developed a new tool that allows us, the branch employees, to know from the first moment what offer we can make to a new customer. Let's say you come to the bank to open a bank card. We enter your data into the system, and it shows us that we can offer you an unsecured loan on the spot, provide you with a children's card, and even discuss the terms of a mortgage. In my opinion, this is a real service revolution, which once again underlines that the customer is always at the center of our attention and that we, as a bank, are ready to give them the tools to make any decision and respond to any need. The customer manages their life, and we, as a bank, help them to do so.
