IMPLEMENTATION OF RESPONSIBLE LENDING PRINCIPLES IN THE REPUBLIC OF MOLDOVA: DRAWBACKS AND OPPORTUNITIES

Stela Ciobu () and Victoria Iordachi ()
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Stela Ciobu: Academy of Economic Studies of Moldova, Chi?inau, Republic of Moldova
Victoria Iordachi: National Institute for Economic Research, Academy of Sciences, Republic of Moldova

Contemporary Economy Journal, 2018, vol. 3, issue 3, 108-119

Abstract: The huge negative effects of the global financial and economic crisis that increases significant credit risk prompted international community and financial organizations to launch and to promote responsible lending practices, to develop a set of principles and practices in order to minimize credit risk through responsible lending. Responsible lending benefits consumers and minimises the risk of abusive practices and over-indebtedness and this implies lower credit risk for the creditor. In the Republic of Moldova this subject is very actual due to a high level of non-performing loans. According to data presented by the National Bank of Moldova, in recent years the volume and the ratio of non-performing loans in total credit portfolio is continually increasing.The purpose of the research is to establish responsible crediting principles, identify factors, methods and techniques that will minimize credit risk for both debtors and creditors.

Keywords: responsible lending; credit procedures; credit risk; non-performing loans; credit portfolio; banks; creditor; debtor (search for similar items in EconPapers)
JEL-codes: E52 E58 G21 (search for similar items in EconPapers)
Date: 2018
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Persistent link: https://EconPapers.repec.org/RePEc:brc:brccej:v:3:y:2018:i:3:p:108-119

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