Moldovan analytical centre proposes seven urgent measures to strengthen banking sector

Chisinau, 8 February /MOLDPRES/ - The Expert-Grup Independent Analytical Centre unveiled a plan on reviving the banking sector at a news conference today. “This plan must be carried out in two years at the latest. The situation is serious needs actions,” the Expert-Grup executive director, Adrian Lupusor, has said.    

The banking crisis, which disturbed the Moldovan economy in 2015, can be mitigated by a plan that includes seven urgent solutions, implemented both at the level of the National Bank of Moldova (BNM) and other relevant institutions, as well as at the level of commercial banks, experts said. This plan “would attenuate the consequences of the crisis and prevent similar crises in the long run.”

The solutions suggested by economists refer to strengthening the BNM’s independence, fortifying the banking monitoring and supervision, enhancing the transparency of stockholders of the banking system, improving the corporate governance in banks. Also, developing mechanisms of turning banking managers more responsible, increasing the banks’ capacities to absorb losses would help  consolidate the banking system.

According to experts, it is necessary to establish a clear-cut mechanism of assessing the “quality” of stockholders, in order not to allow the holding of banking shares by persons with dubious integrity. In this respect, the actions must regard the test of integrity and transparency and facilitating exchange of information with the states of residence of the banks’ final beneficiaries.  

Expert-Grup speaks out for promoting a general code of Corporate Governance. The study’s authors propose developing the double verification principle, as well as implementing a mechanism in which stockholders are obliged to cover the losses and any other consequences of a bad management with their own sources.  

It is necessary to ban any interactions between banks and the companies from the regions which do not observe the transparency standards, as well as to fully adjust the Moldovan legislation to the EU provisions in the money laundering sector, the study also says.   

At the same time, Expert-Grup commits to monitor the authorities’ actions aimed at stabilizing the banking sector and prevent similar crises in future.

(Reporter V. Bercu, editor M. Jantovan)