National Bank of Moldova sanctions former managers of problem bank with maximal fine

Chisinau, 19 May /MOLDPRES/ - The National Bank of Moldova (BNM) has sanctioned five former managers of Banca Sociala (Social Bank), under liquidation, with maximal fine stipulated by the law (ten average salaries on financial activities). The sum of the fine is to be transferred to the state budget.    

The BNM press service specified that, on 16 May, the Executive Committee of the National Bank ruled to apply sanctions of maximal fine against the former managers Natalia Rahuba, Sergiu Albot, Valentin Cunev, Leontie Suholitco, Vladimir Novosadiuc.    

BNM found out that, on the period of exercising the office of manager, the aforementioned people infringed the law on financial institutions and normative acts of the National Bank. The infringements deal, mainly, with the inadequate classification and assessment of the loans provided, involvement in manipulation activities, non-observance of the limits and requirements concerning the concentration of risks, bank’s involvement in risky and dubious operations. Also, the five former managers did not observe the requirements of compilation of reports on prudential purposes and submitted to BNM reports with wrong data on banking prudence indexes.   

The application by BNM of sanctions against the aforementioned persons does not exclude possibility of applying other sanctions against the latter, according to the legislation. In particular, it is about criminal sanctions, if deeds representing offences, under the law, are ascertained, the Central Bank also said.

At the same time, the National Bank considers that the maximal size of the concerned fine, provided for by the law, is not quite proportional to the seriousness of the infringements committed and damages caused to Banca Sociala. As a result, BNM has set the goal to promote amendments to legislation, in order to toughen the sanctions applicable against the banks’ managers.   

Banca Sociala is under liquidation. The executive committee of the National Bank of Moldova on 16 October 2015 ruled to withdraw the licenses for carrying out the financial activities of Banca de Economii (Savings Bank), Banca Sociala and Unibank, as a result of their insolvency and other infringements of the provisions of the legislation in force. The process of compulsory liquidation of these banks was initiated in accordance with the law on financial institutions.

(Reporter V. Bercu, editor M. Jantovan)