Moldovan cabinet approves new draft law on non-banking crediting organizations

Chisinau, 11 October /MOLDPRES/ - The cabinet of ministers today approved a new draft law on the non-banking credit organizations, due to be submitted to parliament for consideration.      

“The sector of micro-financing has reached a degree of development which requires a much more complex approach,” said the National Financial Market Commission (CNPF). According to the Commission, the law passed in 2004 does not meet the rigours “in order to anticipate the liable risks.” The legislative act in force does not contain joint single provisions for the creation of commissions to cover the potential losses related to the non-reimbursement of loans. There is a regulatory void in terms of obligatory requirements set by CNPF, the minimum prudential requirements are lacking, in order to ensure the financial stability of the micro-financing sector, as, for instance, the minimum requirement of capital, limiting the sectoral concentration of the loan portfolio.   

“The role of CNPF boils down only to the “monitoring,” the element of “supervision” being absent, respectively, this deficiency needs to be remedied,” CNPF said. The leasing “so far has not been in the state’s field of supervision, excepting the financial leasing exercised by the financial institutions.”   

The draft law on the non-banking credit organizations stipulates the formation of a joint framework of regulation and supervisions of the entities which practice, as professionals, the non-banking crediting and financial leasing activity. Another new provision, introduced in the draft law, represents a procedure of issuance of the preliminary notification before the registration of legal entities in the state register and subsequent recording in the register of authorized non-banking credit organizations, kept by CNPF.   

Also, a requirement on the admissible size of the own capital, of five percent of the assets’ value, was established too. The document also sees the obligatory carrying out of the audit, if the balance value of assets exceeds 25 million lei. The exigencies to the managers are established as well. The draft also provides for other prudential and non-prudential requirements for the non-banking credit organizations.    

According to the amendments, the non-banking credit organizations, just as the other professional participants in the securities market, will pay a regulatory bill worth up to 0.1 per cent of the annual average value of the balance of non-banking credits and financial leasing recorded, but no more than 200,000 lei.    

(Reporter V. Bercu, editor L. Alcaza)