Risk Assessment in Financial Services in Moldova: A Review

February 7, 2022

Despite efforts to strengthen oversight, Moldova’s financial system still faces significant gaps in risk assessment and oversight, according to a recent review by the International Monetary Fund (IMF) and the World Bank.

Key Findings

• The review aimed to identify areas where Moldova’s financial sector could be strengthened to better withstand potential shocks.
• While some progress has been made in developing a macroprudential framework, systemic risk assessment, and stress testing, more needs to be done to improve financial stability analysis.
• Key data gaps hamper financial stability analysis, and statistical reporting to the IMF’s Statistics Department is inadequate.

Recommendations

• Enhance capacity in financial sector oversight and development
• Strengthen financial inclusion and capital markets development
• Prioritize risk assessment and oversight
• Take a more proactive approach to addressing vulnerabilities in the financial sector

International Cooperation

• The review highlights the importance of international cooperation in supporting Moldova’s efforts to strengthen its financial system.
• The country’s authorities are urged to prioritize risk assessment and oversight, and to take a more proactive approach to addressing vulnerabilities in the financial sector.

Full Report

The full report, “Country Report No. 2022/030: Risk Assessment in Financial Services in Moldova, Republic of,” is available for free download from the IMF website.