The National Bank of Moldova (NBM) calls on the citizens to constantly inform themselves so as to correctly manage their incomes. In this regard, besides many other measures and activities, the Bank organizes financial education events for people of all ages. “The NBM carries out multiple financial education activities for citizens and this way helps them to correctly manage their incomes and to take well-thought-out financial decisions,” adviser to the Bank’s governor Natan Garștea has told IPN. In the current conditions, it is important for the citizens to know the transformations taking place in the banking sector and to be able to use the advantages offered by the current developments.
In a recent event staged by the NBM, Natan Garștea spoke about the way in which the Bank influences the banking sector and how the citizens should react. “The NBM tries to influence inflation by increasing or decreasing the rates, by increasing or decreasing the mandatory reserves of the commercial banks. If the NBM sees that a wave of inflation is approaching and it raises the reference income rates, the banks will increase the rates on deposits and loans. The rates on loans will be higher, the people will borrow less and less money will go from banks to the economy. At the same time, more people will make deposits at banks if the rates on deposits are higher and more money will be this way gathered in banks and less in the economy,” explained Natan Garștea, noting that if the central bank increases the refinance rate, which is the base rate, the people can see that inflation is expected, the interest rates on deposits will rise and loans will be more expensive and they should act correspondingly.
Asked to comment on how the clients of banks should act in the current conditions when the interest rates are rather low and many clients choose to close deposits, Natan Garștea said it is up to the consumers to take decisions as to deposits.
Asked to comment on the people’s tendency to keep savings in euros or dollars, Natan Garșea said the reforms in the banking sector turned out to be efficient and beneficial to the citizens, who gained trust in banks and many of them choose to keep the money in safe conditions. The deposits are an important part of the bank’s financing sources and the monetary policy decisions will make the banks review their policies concerning deposits by offering more competitive products, including with more attractive interest rates.
“The Republic of Moldova now has a viable and safe banking sector due to the reforms done by the National Bank the last few years as these stimulated the modernization of bank services, ensured shareholder transparency and improved corporate governance of banks. This way, the banking system acquired increased stability and offers safety to its depositors. A deposit guarantee fund to guarantee deposits of up to 50,000 lei was created as part of the reform. Also, the access to information is much wider,” stated Natan Garșrea.
