Framework of management of banks' activity to be improved in Moldova

Chisinau, 25 June /MOLDPRES/ - The executive committee of the National Bank of Moldova (BNM) on 24 June approved a regulation on the framework of management of banks’ activity.

According to the BNM press service, the new provisions relate to the structure of corporate governance, mechanism of internal control and ways of risks’ management in banks. Thus, the banks are obliged to carry out their activity efficiently and transparently, to have a proper organizational structure, have a framework of regulation meeting the bank’s business model, in order to manage all risks resulting from its activity and maintain the financial stability, so as to protect the interests of the depositors, etc. Also, the banks must report cases of frauds which might affect their safety, solidity and reputation.      

At the same time, the banks will have to adapt the policy of appointing of managers to their dimension and complexity and carry out a remuneration policy which is not to favour the assuming of excessive risks.  

The regulation was worked out by taking into account the specific character of the financial and banking market, as well as the best international practices in the field, including the acts of the Basel Committee.

Before the approval, the draft was consulted with the public and the banking community. The new regulation represents a support and the first stage of transition to the new prudential requirements promoted by the Central Bank through the implementation of the BASEL III standards on 1 January 2018.