BANKS MEET KEY INDICATORS, DEVELOPMENTS IN NATIONAL LEGISLATIVE FRAMEWORK

Banking Sector Resilience in Moldova

According to recent data, all banks in Moldova have met key prudential indicators by the end of 2022. The total own funds reached MDL 18.4 billion, a 21.2% increase from the previous year.

Factors Contributing to Increased Own Funds

Banks’ efforts to strengthen their financial positions
Adaptation to changing market conditions

National Bank of Moldova Developments

The National Bank of Moldova (NBM) has been actively developing the national legislative framework to ensure the stability and soundness of the banking system. Several regulations have been amended or introduced to enhance:

Key Areas of Focus

Risk management
Corporate governance
Transparency in the banking sector

Notable Developments

Framework for Excessive Leverage Risk Management

Aims to prevent banks from taking on excessive risks that could threaten financial stability
Includes provisions for creating recovery plans and resolution plans
Requires independent valuers and notification procedures

Amendments to Regulation No. 292/2018

Establishes the obligation for the NBM to conduct interviews with members of the governing body
Increases transparency in the evaluation process

Additional Provisions

The amendments also include provisions related to:

Credit Risk Management Policies

Cash flow management
Reporting requirements for banks

These changes aim to ensure that banks maintain a strong risk management framework and avoid excessive risk-taking in lending.

Conclusion

In conclusion, the Moldovan banking sector has shown resilience and adaptability in meeting key prudential indicators. The NBM continues to develop the national legislative framework to promote stability, soundness, and transparency in the banking system.