Republic of Moldova: Financial Sector Assessment Program—Detailed Assessment of Observance on the Basel Core Principles for Effective Banking Supervision
IMF Staff Country Reports, February 29, 2016
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Bibliographic details
- Published: February 29, 2016
- Series: IMF Staff Country Reports
- DOI: https://doi.org/10.5089/9781513504131.002
Summary and principal findings
- The National Bank of Moldova (NBM) has made significant progress in reinforcing its prudential and supervisory framework.
- Two medium-term strategies have been designed in succession since 2008 to set a forward-looking approach for supervision.
- The most recent strategy spans four years (2013–17) and aims to ensure a higher level of efficiency, transparency, and performance of the NBM, with particular emphasis on corporate governance.
- The country is in the process of transitioning from Basel I to Basel II.
- In the context of an Association Agreement to be signed with the European Union (EU), the NBM plans to implement the standard risk-weighting model of Basel II as well as other elements of Basel III.
- The objective is to enhance the NBM’s institutional capacity with the view to foster the banks’ prudential regulatory framework.
- The association process will also enable NBM to gradually implement the EU Capital Requirements Regulation and Directive (CRR/CRD).
Progress and reforms
- Medium-term supervisory strategies implemented since 2008, most recently covering 2013–17.
- Focus areas include efficiency, transparency, performance, and corporate governance enhancements.
- Transition plan: Basel I → Basel II, with adoption of the standard risk-weighting model and selected Basel III elements.
- Regulatory alignment objective: gradual implementation of the EU Capital Requirements Regulation and Directive (CRR/CRD) in the context of the Association Agreement with the EU.
Policy implications and objectives
- Strengthen NBM institutional capacity to support a more robust prudential regulatory framework for banks.
- Improve supervisory effectiveness through adoption of international best practices, especially in corporate governance.
- Align Moldova’s banking regulation with EU standards (CRR/CRD) and Basel frameworks to support financial stability and supervisory convergence.
Subjects and keywords
- Subjects: Bank regulation, Bank supervision, Banking, Capital adequacy requirements, Financial regulation and supervision, Internal audit, Internal controls, Market risk, Public financial management (PFM), Revenue administration
- Keywords: bank management, Bank regulation, Bank supervision, bank's activity, business plan, central bank, corporate governance, corporate governance policy, CR, financial activity, Global, Internal audit, Internal controls, ISCR, management body, Market risk, Moldovan bank, require bank, risk appetite, risk management, risk profile, senior management
International Monetary Fund. Republic of Moldova: Financial Sector Assessment Program-Detailed Assessment of Observance on the Basel Core Principles for Effective Banking Supervision (IMF Staff Country Reports 2016, 071).