The Government approved a bill to adjust the Law on Financial Institutions and the Law on the State Registration of Legal Entities and Private Individuals. The amendments are aimed at strengthening the National Bank of Moldova, ensuring increased powers to supervise and control commercial banks, which, for their part, are obliged to ensure greater transparency, IPN reports.

The document provides, inter alia, that the permission of the National Bank of Moldova is needed for purchasing or subscribing for shares of commercial banks. The central bank will have the right to institute special administration if it ascertains a concerted approach of shareholders that own more than 50% of the share capital of a bank, which wasn’t authorized by it.

The bill enables the central bank to stipulate by regulations auditing activities at banks for other purposes than those provided now by the legislation and to extend the term of liquidation of banks from three to five years.

According to the bill authors, the given amendments will ensure the development of healthy corporate governance, in accordance with the international principles.

National Bank vice governor Marin Molosag said the changes are designed to strengthen the national legal framework concerning transparency and quality of bank ownership, corporate governance and administration of risks in the banking system. These will enable to adjust the national legislations to the European one, given the commitments assumed by Moldova by the Association Agreement with the EU.