Republic of Moldova: Financial System Stability Assessment

International Monetary Fund

No 2016/070, IMF Staff Country Reports from International Monetary Fund

Abstract: Moldova has made some important advances since the 2008 FSAP Update. On the positive side, inflation has been brought down to single digits, the payment system has been upgraded, and important enhancements have been made to financial sector regulation and supervision. However, risks to banking sector stability have become severe. Large credit concentration and concealed connected lending, 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 these 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.

Keywords: ISCR; CR; bank; NBM; NBM regulation; ownership structure; resolution plan; B. bank governance; NBM securities; NBM recommendation; bank shareholder; NBM law; NBM board members; Legal support in revenue administration; Stress testing; Financial sector stability; Commercial banks; Global (search for similar items in EconPapers)
Pages: 58
Date: 2016-02-28
References: Add references at CitEc
Citations:

Downloads: (external link)
http://www.imf.org/external/pubs/cat/longres.aspx?sk=43745 (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:imf:imfscr:2016/070

Ordering information: This working paper can be ordered from
http://www.imf.org/external/pubs/pubs/ord_info.htm

Access Statistics for this paper

More papers in IMF Staff Country Reports from International Monetary Fund International Monetary Fund, Washington, DC USA. Contact information at EDIRC.
Bibliographic data for series maintained by Akshay Modi ().