Republic of Moldova: Financial System Stability Assessment
IMF Staff Country Reports, February 29, 2016
Source details
- Canonical URL
- Republic of Moldova: Financial System Stability Assessment
Other formats
Bibliographic details
- Published: February 29, 2016
- Series: IMF Staff Country Reports
- DOI: https://doi.org/10.5089/9781513501611.002
Executive summary and key findings
- Inflation has been brought down to single digits.
- The payment system has been upgraded.
- Important enhancements have been made to financial sector regulation and supervision.
- Risks to banking sector stability have become severe.
- Large credit concentration and concealed connected lending create elevated vulnerability.
- 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 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 areas and keywords
- Subjects: 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
Content in this bundle
- Republic of Moldova: Financial System Stability Assessment; IMF Country Report 16/70; June 5, 2014