Commercial Banks And The Banking System Of The Republic Of Moldova

The banking system of Moldova as an independent state began to take shape in 1993. It consists of two levels: the National Bank of Moldova and commercial banks.

The National Bank regulates capital adequacy and risk, establishes the minimum capital requirements for all commercial banks registered in the country. The capital of Moldovan banks consists partly of domestic funds of investors and foreign sources of investment. The largest banks in Moldova are the four former state-owned banks privatized in 1994-95, which hold about 54% of their banking assets.

Moldovan commercial banks:

Romanian Commercial Bank
Economy Bank
Social bank
Comertbank
Energbank
EuroCreditBank
Eximbank
Fincombank
InvestPrivatBank (liquidated and acquired by Banca de Economii)
Mobiasbank
Moldinconbank
Moldova Agroindbank
ProCredit
Unibank
Universalbank
Victoriabank
National Bank of Moldova

The National Bank of Moldova is the central bank of the Republic of Moldova and serves as an autonomous public legal entity responsible for the Parliament. The main objective of the National Bank of Moldova is to maintain and ensure price stability. In addition to its main objective, the National Bank promotes and maintains a financial system based on market principles and supports the general economic policy of the state.

The National Bank shall cooperate with the Government in the implementation of its directives and, in accordance with the law, shall take the necessary measures to implement such cooperation. The National Bank periodically informs the public about the results of the macroeconomic analysis, the evolution of the financial market and statistical information, including on the money supply, the issuance of loans, the balance of payments and the situation on the foreign exchange market.

The National Bank was not registered in the State Register of Enterprises or in the State Register of Organizations.

The National Bank is independent in fulfilling its functions established in the Law on the National Bank of Moldova, does not apply and does not receive, according to the same law, recommendations from the authorities, as well as from other public institutions.

In order to fulfill its functions, the National Bank has the right to take decisions, to approve regulations, instructions and ordinances. Normative acts of the National Bank, binding on financial institutions and other legal entities and individuals, are published in the Official Gazette of the Republic of Moldova and enter into force on the day of publication or at another date provided in the text, provided that the public is informed.

Banking system

In 1991, according to the legislation, a two-tier banking system was created in which the National Bank of Moldova operates as a central bank, but which is not involved in commercial banking. In June and July 1995, the Parliament adopted 2 laws on the National Bank of Moldova and financial institutions.

These laws include elements aimed at strengthening the role of the National Bank in the development and implementation of monetary and exchange rate policies and the safe and sound functioning of the financial system.

The National Bank of Moldova is responsible for authorizing, regulating and supervising the activities of financial institutions. These functions are performed taking into account the Basic Principles of the Basel Committee on Effective Banking Supervision.

Licenses, including for transactions with significant shares in the capital of banks, are issued only if the National Bank of Moldova is fully confident that the authorized persons will have a stable financial situation and will act in accordance with legal prudential requirements, including requirements on qualifications, experience, the reputation of administrators and their owners.

Prudential regulation determines the maximum indicators and positions that banks must respect in terms of their assets, risk-sensitive assets, extra-budgetary items and various categories of capital and reserves. Banks are obliged to adjust the terms and interest on assets and liabilities, not to exceed unsecured positions in foreign currency, to keep liquid resources within the requirements in relation to the volume of assets or liabilities.

Banks’ internal control systems aim to protect the interests of depositors, shareholders and customers by ensuring compliance with applicable laws, regulating conflicts of interest, ensuring full use of revenues to increase profits, authorized expenditures for this purpose, adequate protection of assets, proper registration of obligations and risk limitation.

Compliance with the prudential requirements of banks, the assessment of risks inherent in their activities is subject to monitoring, both remotely and in the field. Banking legislation provides substantial rights to the National Bank of Moldova to


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