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National Bank of Moldova Issues New Guidelines for Foreign Banks
Chisinau, Moldova - The National Bank of Moldova has issued a new set of guidelines for foreign banks operating in the country. These guidelines aim to ensure the stability and transparency of the Moldovan banking system and protect the interests of depositors and shareholders.
Scope of Representation Offices
According to the norms, representation offices of foreign banks are only allowed to engage in acts of information, connection or representation and cannot participate in any activity provided by Article 26. This means that these offices will be limited to providing information about the bank’s activities and services, connecting customers with the bank’s services, and representing the bank’s interests.
Capital Requirements
The guidelines also outline the capital requirements for banks, stating that each bank shall have a minimum amount of capital as provided by Art. 5 (1). Shares must be paid integrally with funds, ensuring that the bank has sufficient resources to operate safely and soundly.
Restrictions on Ownership and Holdings
- The transfer of an equity interest in a bank shall require 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 such bank.
- Banks are prohibited from holding an equity interest in a legal entity engaged in activities other than financial activities without prior written authorization from the National Bank.
Offshore Holdings
The guidelines also set limits on the amount of equity interests held by resident persons from off-shore zones and/or countries, stating that the total amount shall not exceed a significant interest. This ensures that foreign investors do not accumulate excessive control over Moldovan banks.
Importance of Autonomy
The bank emphasized the importance of autonomy, stating that 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. This means that banks will have the freedom to operate independently and make decisions without interference.
Conclusion
These guidelines are aimed at ensuring the stability and transparency of the Moldovan banking system and protecting the interests of depositors and shareholders. By outlining clear rules for foreign banks operating in the country, the National Bank of Moldova is promoting a safe and sound banking environment that benefits both domestic and international investors.