Council Members’ Independence Criteria Set by National Bank

Ensuring Objectivity in Banking Governance

The National Bank of Moldova has introduced strict criteria for assessing the independence of council members of banks operating in the country. This move aims to ensure that council members act in the best interests of the bank and its stakeholders, rather than pursuing personal or vested interests.

Criteria for Non-Independence

According to a recent amendment to the Regulation on the Organization and Operation of the Council of Banks, a council member is considered non-independent if they hold or have held certain positions or relationships with the bank or other entities within the prudential consolidation perimeter over the past five years. Specifically:

• Management Body Positions: Those who have held management body positions in banks or entities within the scope of prudential consolidation.
• Stakeholdings: Council members who hold or have held a direct or indirect stake of at least 5% in the bank’s capital.
• Significant Financial or Economic Relationships: Members with significant financial or economic relationships with the bank (more than 5% of equity).
• Employment Relationships: Employees of or similar relationships with holders of such stakes, or those who have been employed by entities within the perimeter of prudential consolidation (except in certain circumstances).
• Professional Consultancy Firms: Those who held senior positions or acted as leaders or members of management bodies in professional consultancy firms, external auditors, or important consultants for banks.
• Business Relationships: Significant suppliers or clients of the bank or have other important business relationships.

Qualifying Independence

While council members who fit into one or more of these situations cannot automatically be considered non-independent, the National Bank may choose to qualify a member as independent if there are justified reasons to believe they can exercise their duties objectively and make independent decisions.

New Guidelines for Specialized Committees

In related news, the National Bank has also issued new guidelines on the organization and operation of specialized committees within banks’ councils. These committees will play a crucial role in supporting the council’s activities and contributing to the development and improvement of banking practices in Moldova.