Notification Required: Representation Offices of Foreign Banks Limited to Information and Representation Activities

In accordance with the normative acts of the National Bank of Moldova, representation offices of foreign banks are required to limit their activities to information and representation purposes only. This is done to ensure that the activities of foreign banks operating in Moldova do not pose a risk to the stability of the country’s financial system.

Autonomy of Banks

Each bank shall enjoy complete legal, operational, financial, and administrative autonomy from any other person, including the National Bank, the Government, and any other public administration entities. No person shall limit or interfere with the autonomy of banks, except in the execution of a specific authority or duty under the law.

• Banks are entitled to:
  • Freedom of contract
  • The right to own and dispose of movable and immovable property
  • The right to be a party to legal proceedings

Capital Requirements

The minimum amount that banks must maintain as regulatory capital shall not be lower than the quantum set out in Article 5(1). Shares must be paid integrally with funds.

Restrictions on Ownership and Holdings

• The transfer of an equity interest in a bank requires written authorization from the National Bank if, as a result of such transfer, any one person or number of persons acting in concert would, directly or indirectly, hold a significant interest in the bank.
• Determinations are based on the criteria described in Article 7(2).
• The voting right of shareholders holding significant interest in a bank without the authorization of the National Bank shall be reduced to the value of equity interest exceeding the limits allowed by the National Bank.
• Shareholders must obtain authorization from the National Bank within three months or sell stocks held without such authorization.

Limits on Foreign Ownership

• The amount of all equity interests in a bank, owned directly or indirectly by resident persons of off-shore zones and/or countries, shall not exceed significant interest.
• No bank shall, alone or in concert with one or more other persons, without prior written authorization from the National Bank, hold an equity interest in a legal entity that is engaged in activities other than financial activities that either represents a significant interest or exceeds its net current value.