Improvement of the Internal Control System of Credit Risk in Banking Sector of the Republic of Moldova in Conditions of the COVID-19 Pandemic

Stela Ciobu () and Anastasia Tataru ()
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Stela Ciobu: Investments and Banking Activity Department, Academy of Economic Studies of Moldova
Anastasia Tataru: Investments and Banking Activity Department, Academy of Economic Studies of Moldova

Global Economic Observer, 2021, vol. 9, issue 2, 43-57

Abstract: The internal control system of credit risk in the banking sector of the Republic of Moldova is currently jeopardized by the effects of COVID-19 pandemic. The COVID-19 crisis has triggered five major challenges to the credit risk environment: changes in the credit worthiness at the sector and subsector level, difficulty in differentiating between borrowers in the same sector/subsector, scare, lagging data on crisis conditions, socially responsible collections needed to meet changing customer preferences, large wave of non-performing loans which must be addressed in a new way. Consequently, banking institutions are forced to identify new solutions in fostering the efficiency of internal control systems.

Keywords: internal control system; credit risk; COVID–19; impact; banking sector; improvement; consolidation; audit. (search for similar items in EconPapers)
Date: 2021-12
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