Republic of Moldova: Financial System Stability Assessment

February 29, 2016

Preview Citation

Format: Chicago

Republic of Moldova: Financial System Stability Assessment, (USA: International Monetary Fund, 2016) accessed December 22, 2024

Summary

Moldova has made some important advances since the 2008 FSAP Update. On the positive side, inflation has been brought down to single digits, the payment system has been upgraded, and important enhancements have been made to financial sector regulation and supervision. However, risks to banking sector stability have become severe. Large credit concentration and concealed connected lending, questionable cross-border exposures, and important data gaps mean that regulatory data likely significantly understate the system’s vulnerability. Non-transparent ownership, weak governance, connected lending and weaknesses in regulatory powers and enforcement further exacerbate these risks and could limit the scope for an effective policy response to shocks. Governance structures, internal oversight processes, and risk management practices are poorly developed. In some cases, cross-border exposures are substantial and the pattern of some (particularly cross-border) financial transactions suggest a serious risk of money laundering.

Subject: Banking, Commercial banks, Financial crises, Financial institutions, Financial sector policy and analysis, Financial sector stability, Legal support in revenue administration, Revenue administration, Stress testing

Keywords: B. bank governance, Bank, Bank shareholder, Commercial banks, CR, Financial sector stability, Global, ISCR, Legal support in revenue administration, NBM, NBM board members, NBM law, NBM recommendation, NBM regulation, NBM securities, Ownership structure, Resolution plan, Stress testing

Publication Details

Pages:

58
Volume:

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DOI:

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Issue:

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Series:

Country Report No. 2016/070
Stock No:

1MDAEA2016002
ISBN:

9781513501611
ISSN:

1934-7685

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