Moldovan experts point to persisting of risks in banking system, along with first signs of stabilization

Chisinau, 4 August /MOLDPRES/ - There are shortcomings in terms of transparency and quality of shareholders, development of the intervention instruments of the National Bank of Moldova (BNM) and return of the embezzled funds, although more actions on reforming the financial and banking sector were undertaken in April – July 2016. This is a conclusion reached by the Expert-Grup Independent Analytical Centre, which launched the second issue of the publication Monitorul Financial (Financial Journal) today.         

Among the government’s achievements of the last months, experts include actions dealing with the financial and banking sector and Roadmap on the priority reforms agenda – essential actions to resume the foreign financial assistance. A proof to this end is the Law on Central Securities Depositary and the Law on banks’ recovery and resolution, which although prove to be quite complex and with major implications for the financial sector, were developed in a short period.        

“Another notable progress was the IMF’s announcement on a staff level agreement concerning a new accord on economic and financial policies with the Moldovan government. The agreement is means to give a certain dose of confidence to all foreign partners on the economic and political environment from Moldova,” experts said.

Nevertheless, the measures undertaken so far “are not fully enough to ensure an efficient financial system and neither to prevent similar crises in the long run.” There are still more questions in terms of quality of assets of the entire banking system, as well as concerning the general situation at the biggest three banks, which continue to be under special supervision, the publication’s authors noted. Also, “one of the principal recommendations by IMF, and namely the quality and transparency of the bank shareholders, has not been fully accomplished, in conditions when there are doubts about more stocks as to their real beneficiaries.”   

To continue and speed up the pace of reforms in the financial and banking system, Expert-Grup recommends to fully and qualitatively carry out the provisions regarding the financial and banking sector of the Roadmap on the priority reforms agenda, ensuring a comprehensive and transparent investigation on the frauds in the banking system, which is to comprise a longer period of time, that would give an impetus to the recovery of the funds embezzled.

Also, it is necessary to observe the requirements concerning the money laundering and highlighting all states and territories which do not implement the international transparency standards in the national legislation and are described as offshore jurisdictions.

Expert-Grup reiterates the need to fulfill the earlier formulated recommendations, among which: removing any interactions between the “offshore companies” and commercial banks of Moldova, as they represented an essential element in embezzling the funds of the liquidated commercial banks; reforming the framework of guaranteeing banking deposits, including by increasing the ceiling of guaranteeing the bank deposits in the next years till at least 12 average salaries on the economy (about 60,000 lei); enhancing prudential requirements to remove toxic assets from the entire banking system, reforming the National Committee on Financial Stability, so that its duties do not overlap with the ones of BNM and the National Financial market Commission; speeding up the enforcement of the provisions of the Association Agreement, especially in terms of financial services, are other recommendations formulated by experts.

(Reporter V. Bercu, editor A. Raileanu)