Financial Crime World

Strengthening Governance and Risk Management in Moldova’s Banking Sector

Regulatory Frameworks to Enhance Financial Stability

The Republic of Moldova is set to bolster its regulatory frameworks for financial institutions with the launch of a new twinning project aimed at strengthening corporate governance and risk management in the country’s banking sector. The project, launched on January 18th by Governor Mugur Isărescu of the National Bank of Romania, brings together five highly technical components covering areas such as financial macro-stability, prudential supervision, non-bank financial sectors, internal regulatory frameworks for supervision, and regulatory frameworks for payment infrastructure.

Project Objectives

The project’s objectives include:

  • Enhancing response capacity to adverse situations
  • Strengthening corporate governance, supervision, and risk management in the financial sector
  • Converging with international prudential financial requirements and aligning with European Union standards

Key Components of the Project

The project team will comprise experts from De Nederlandsche Bank (DNB), Lietuvos Bankas, Romanian Financial Supervisory Authority, and Romanian National Authority for Consumer Protection. The two-year project is expected to help Moldova’s banking system develop its resilience and support economic growth.

New Regulatory Frameworks

The new regulatory frameworks will cover various areas including:

  • Prudential supervision
  • Internal regulatory framework for supervision
  • Payment infrastructure functionality at European standards
  • Aligning with international standards, such as Basel III

Benefits of the Project

The implementation of these new frameworks is expected to help strengthen the banking system, promote financial stability, and support economic growth. Experts say that the project will play a crucial role in helping Moldova achieve its economic development goals.

Moldova has been working to improve its banking sector governance following a series of challenges it faced in recent years. The country has implemented several measures aimed at strengthening supervision, corporate governance, and risk management in the financial sector.

Conclusion

The launch of the twinning project is seen as a significant step forward for Moldova’s financial sector and a key milestone in its journey towards achieving economic stability and growth.