Impact of Fees and Commissions on Banks Profitability in the European Union and the Republic of Moldova

Stela Ciobu () and Victoria Iordachi ()
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Stela Ciobu: Finance Department Academy of Economic Studies of Moldova, Chişinău, Mitropolit Bănulescu Bodoni 61 Street, Republic of Moldova
Victoria Iordachi: National Institute for Economic Research Academy of Economic Studies of Moldova, Chişinău, Ion Creangă 45 Street, Republic of Moldova

Global Economic Observer, 2026, vol. 14, issue 1, 122-135

Abstract: The article analyzes the impact of fees and commissions on the profitability of the banking sector in the European Union and the Republic of Moldova during 2015-2024. The research tracks the structural evolution of the main components of total operating income, with a focus on net fees and commissions (F&C) income, in the context of transformations generated by digitalization, European regulations on the capping of interbank fees, increased competition from financial technology companies (fintechs) and changes in monetary policy. The study uses consolidated data published by the European Central Bank and the National Bank of Moldova and applies a comparative and structural analysis of banking profitability indicators. The results highlight the fact that fees and commissions represent a more stable and resilient source of income compared to interest income, especially in periods of macroeconomic volatility. At the same time, the research reveals that the banking sector in the Republic of Moldova is in a transition phase towards a more diversified revenue model but continues to show a high dependence on interest income and international payment processing infrastructures. The conclusions emphasize the need to strengthen the national payment infrastructure, optimize the costs of digital services and develop sustainable models for monetizing financial services.

Keywords: profitability; fees and commissions; non-interest income; digital banking; interchange fees; banking system; financial stability. (search for similar items in EconPapers)
JEL-codes: E42 F36 G21 G28 O33 (search for similar items in EconPapers)
Date: 2026-06
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