The banking system of the Republic of Moldova remains stable and is an element of internal stability, said the Governor of the National Bank of Moldova (NBM) Octavian Armașu. In the launch of Moldova Business Week 2022, he said that since the war in Ukraine started, the national banking system has coped with the demand of liquidity, which shows that the system is strong and resilient, IPN reports.
The Governor said that the economy and the banking system have gone through a series of shocks generated by the regional security crisis, the energy crisis and the pandemic but Moldovan banks have proved their resilience.
“In the period, the banking system in Moldova was and continues to be stable, constituting a paramount element for ensuring the security of the country. The banking system provided the economy with sufficient and affordable liquidity, which enabled the economy to recover during the post-pandemic period, and which was an important part of last year’s record economic growth of 13.9%. At the beginning of the war, the domestic banking system met all liquidity requests, becoming one of the elements for ensuring internal stability,” said Armașu.
According to the Governor, this stability and resilience of the banking system is largely the consequence of the reforms of recent years. Among the most important ones being the implementation of Basel III principles, amendment of the bank recovery and resolution procedures, application of the most advanced practices in the field of combating money laundering and terrorist financing. All these resulting in a complete audit of bank shareholders, removing from the system all those who do not meet the requirements of this field.
“These actions allowed not only to increase the resilience and stability of the banking sector, but also developed a legal and operational environment for both local and foreign investors. The reforms have been performed in collaboration with the development partners of the Republic of Moldova. Thus, national legislation has become highly homogeneous with European directives and relevant international legislation” added the head of the NBM.
Moldova Business Week 2022 brings together experts and decision-makers from the country and abroad. The event takes place during September 15-16.
