The National Bank of Moldova will be empowered to supervise the nonbanking financial system. More exactly, the Bank will license, authorize and issue the permit for state registration, will regulate and supervise the activity of insurers, reinsurers and intermediaries in insurance or reinsurance and also of the National Bureau of Motor Insures of the Republic of Moldova, savings and loan associations, credit bureaus and nonbanking lending organizations, IPN reports.
This is provided in a bill introduced into Parliament. The Government, which drafted the bill, said the given provisions derive from the need to strengthen the whole financial market and to prevent eventual risks related to the nonbanking financial sector. The regulation mechanism proposed by this bill is widely applied worldwide.
Under the bill, following the adoption of these provisions, the authority of the National Commission for Financial Markets will be extended to cover the particularities of the nonbanking financial market, which will include the issuers of securities, professional participants in the nonbanking financial market and investors. For their part, the professional participants in the nonbanking financial market will be authorized to perform activities on the capital market and within non-state pension funds.
The new provisions are to take effect on July 1, 2023.
