The National Committee for Financial Stability is to be reorganized. The Ministry of Finance presented for public consultations a bill that provides that the Committee will be an inter-institutional cooperation body responsible for the coordination of implementation of the macroprudential policy and remedying of systemic financial situation crises.
Under the bill, the National Committee for Financial Stability will consist of the National Bank governor, who will head the Committee, the minister of finance, the minister of economy and infrastructure, the chairman of the National Commission for Financial Markets and the general executive director of the Bank Deposit Guarantee Fund. The authors said such a composition will ensure the diversity of opinions.
The extended composition of the Committee, besides the mentioned persons, will include the first vice governor of the National Bank, the vice governors responsible for bank resolution and surveillance, the head of the National Bank’s subdivision responsible for financial stability.
The Committee will coordinate the management of systemic financial crises and will submit policy proposals and measures concerning deposit protection, capitalization and re-capitalization of banks to the Government and other competent bodies. It will approve actions and measures designed to restore credibility in the safety of the financial system and will periodically issue official statements so as to avoid cases of misinformation. It will also adopt a policy and a plan of communication in financial crises and a national plan of action in emergencies.
Earlier, Moldovan experts on different occasions underlined the necessity of fundamentally reforming the National Committee for Financial Stability created in 2010, which turned out to be inefficient in preventing and managing the recent banking crisis. Moreover, owing to its politicized format and unclear powers, the Council was one of the main institutional deficiencies that allowed destabilizing the banking system. The necessity of reforming the Committee was also highlighted by the IMF in its financial sector assessment program of 2014.
