The National Bank of Moldova (NBM), together with the special administrators at Banca de Economii and Banca Sociala, is investigating as series of suspicious operations carried out at these banks in the second part of November and is assisting the law-enforcement in their ongoing investigations. The NBM announced this after the latest IMF report on Moldova triggered comments in the media.
The NBM said in a press release that after introducing special administrations at the two banks, it took firm measures to ensure the bank's proper functioning and protect the clients' money. “A central bank has a number of means and instruments to ensure financial stability in the banking system. The National Bank of Moldova has opted for offering bailout loans, as this is the fastest way to ensure the banks' stability, avoid additional risks and protect individual and corporate deposits”, reads the release.
According to the IMF, severe governance problems in the Moldovan banking system continue to represent a risk to financial stability. Legislation restoring the NBM’s powers was recently enacted but enforcement of regulatory requirements on banks remains weak. Legislation to restore the regulatory powers of the National Commission for Financial Markets (NCFM) still needs to be enacted.
