As from July 1, the regulation and supervision of the nonbank lending and insurance sectors will be the duties of the National Bank of Moldova (NBM) which took over these from the National Commission for Financial Markets (NCFM), IPN reports.
Instead of the Commission, the central bank will now license, authorize, issue the notice for state registration, will regulate and supervise the work of insurers, reinsurers and intermediaries in these fields, such as the National Bureau of Motor Insurers of Moldova, savings and loan associations, credit bureaus and nonbank lenders.
In connection with the transfer of duties, the NCFM announced that all the applications for licensing, approval, renewal of permits and other documents submitted by representatives of the two sectors to the Commission will be remitted for examination to the new supervisory authority – the NBM.
The law providing for the transfer of duties from the NCFM to the NBM was adopted in 2020. A complex process of efficient integration of the new licensing, regulation and supervision duties into the processes and structure of the central bank followed.
“The NBM generally takes a proactive approach to the areas it supervises. Similarly, we support the development of supervised entities by ensuring an appropriate regulatory framework and a transparent, proportionate, complex and risk-based supervisory process. This approach will also be applied to entities in the field of nonbank lending. On the one hand, we will focus on sound corporate governance, which is paramount. On the other hand, we will seek to strengthen the internal control functions in each entity to achieve better public accountability,” NBM Deputy Governor Constantin Schendra stated earlier in an interview for IPN.
