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Significant changes in the credit market. When will it happen?


https://www.ipn.md/en/significant-changes-in-the-credit-market-when-will-it-happen-7966_1096310.html

The practice of inflated rates and fees and inadequate information to consumers about the full costs of a loan must stop. This is what NBM Deputy Governor Constantin Schendra said in an interview with IPN.

According to him, decisions should become more transparent and safer for consumers and loan portfolios - more qualitative.

As of 1 July 2023, everything related to lending and the insurance sector will pass under the supervision of the central bank. So, in less than three months, they will no longer be under the management of the National Commission for Financial Market, as they are now.

In an interview describing the preparations for the transfer, Constantin Șchendra said that the National Bank will apply the same approach to the supervision of the new areas as it has done to the supervision of banks, where the NBM has managed to bring about significant changes in recent years. „We will make sure that all macroprudential or responsible lending instruments work properly”, the NBM Deputy Governor said.

He also assessed the current risk of over-indebtedness as “limited”, which has been achieved by limiting the interest rates and fees charged by non-bank lending organisations and establishing clear criteria in the legislation on the creditworthiness of borrowers.

In the insurance sector, according to Șchendra, the NBM will aim will be to ensure the stability of the system and not to allow negative influences on the management and development of insurance entities.

„As shareholders play a key role in setting the architecture of sound corporate governance of the insurance or reinsurance entity, and assisting it in difficult times, ensuring the transparency of the shareholder structure and quality is crucial to achieving these objectives”, the NBM Deputy Governor added.