Financial Monitor #4: Analysis of the Main Financial Sector Reforms in the Republic of Moldova, February 2016 – April 2017
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Automatically translated summary. The full text is available in Romanian.
The Independent Think Tank “Expert-Grup” has published the fourth issue of its Financial Monitor, assessing how Moldovan authorities implemented the banking sector consolidation plan presented in February 2016. The analysis covers the period from February 2016 to April 2017 and finds only moderate progress across seven reform areas.
Of the 35 recommendations formulated by Expert-Grup, 9 were implemented, 11 were not, and 15 were partially implemented or are in progress. Positive developments include a stronger National Bank of Moldova's independence, greater accountability of bank managers, better loss-absorption capacity and some corporate governance improvements. On 14 June 2016 the National Bank approved its Basel III implementation strategy.
Many recommendations remain relevant. Key gaps include weak rules on National Bank loans guaranteed by the Government to distressed banks, the possibility of dismissing the central bank's management by simple majority, the delayed reform of the National Financial Stability Committee, multiple bank board memberships, exposure to off-shore companies and weak deposit guarantee rules. The publication was supported by the Embassy of the Netherlands in Bucharest.
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