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Moldovan Financial Institutions Must Comply with Strict Regulatory Framework to Ensure Stability and Growth

The National Bank of Moldova (NBM) has outlined a comprehensive regulatory framework for financial institutions operating in the country to maintain stability in the financial sector and promote economic growth.

Licensing, Supervising, and Regulating

According to the new regulations, the NBM will be responsible for:

  • Issuing banknotes and coins as legal tender
  • Commemorative and jubilee banknotes and coins can also be issued for numismatic purposes
  • Exclusive rights to issue currency in Moldova

Monetary Policy Strategy

The NBM has set an inflation target of 5% annually with a possible deviation of ±1.5 percentage points over the medium term, considered optimal for growth and development of Moldova’s economy. To achieve this goal, the bank will implement a monetary policy strategy aimed at ensuring price stability.

Responsibilities

  • Acting as banker and fiscal agent of the State
  • Receiving economic and financial information from state bodies necessary for carrying out its tasks
  • Supervising the payment system in Moldova and promoting a stable and efficient functioning of the automated inter-bank payment system

Transparency and Accountability

The NBM is an autonomous public legal entity and is responsible to the Parliament, ensuring transparency and accountability in its operations. The bank shall:

  • Inform the public on its monetary policy strategy
  • Provide macroeconomic analysis
  • Report on financial market evolution and statistics, including:
    • Monetary supply
    • Crediting
    • Balance of payments
    • Foreign exchange market developments

Responsibilities for Compilation of Statistics

The NBM is also responsible for compiling the balance of payments, international investment position, and external debt statistics of Moldova. This information will be used to inform policy decisions and promote transparency in the country’s economic activities.

Compliance Requirements

Financial institutions operating in Moldova must comply with these regulations to ensure stability and growth in the financial sector. The new framework demonstrates the NBM’s commitment to maintaining a robust regulatory environment that promotes economic development and protects the interests of depositors, investors, and other stakeholders.