The National Bank of Moldova (NBM) in the bank supervision process in 2021 will center on the areas that are exposed to bigger risks given the unpredictability of the economic effects of the COVID-19 pandemic on banks in the immediate period. The five main areas are: credit risk; risk associated with information and communication technology; internal governance, management of risks and internal capital adequacy assessment process (ICAAP), anti-money laundering and terrorism financing, and payment systems, IPN reports, quoting a press release of the bank.
According to the NBM, in the context of the COVID-19 pandemic, the credit risk remains a key area of the supervision process, given the direct impact of the quality of the credit portfolio on the capital of banks. Given that the online services are more frequently used in times of a pandemic, the cyber-risks to banks and clients can grow and generate significant losses and can affect the reputation of banks. Therefore, the NBM in 2021 will assess the situation in the ICT sector at the licensed banks to see how they comply with the Regulation on Minimum Requirements for Information and Communication Systems of Banks and how they manage the ICT risks to which they are exposed.
In 2021, the NBM, within the supervisory review and evaluation process (SREP), will use a pragmatic approach centered on the analysis of the banks’ capacity to absorb the potential impact of the crisis, will analyze the activity of the internal control functions in banks. The Bank will also continue to apply the international standards on the prevention and combating of money laundering and terrorism financing and will step up its efforts to efficiently implement the recommendations of the Council of Europe’s MONEYVAL Committee.
The supervision of the payment systems and services in 2021 will be aimed at increasing their safety and efficiency so as to strengthen the users’ confidence in the used payment services and instruments.
The NBM noted it will ensure the implementation of all the planned actions with funds from its own budget.