Moldovan central bank's governor says EU-financed twinning project to allow edifying solid banking system

Chisinau, 30 May /MOLDPRES/ – The Twinning project "Strengthening the National Bank of Moldova (BNM) Banking Regulation and Supervision in the Context of EU Requirements" launched on 30 June 2015 and implemented for about two years will enable us to modernize the banking sector, to be in line with international standards, said Sergiu Cioclea, the governor of the Moldovan National Bank during the project closing today.  

"It is the ideal time to implement the project to avoid the chaos and problems occurred in the system, so as to anchor the banking activity in a clear direction," said Sergiu Cioclea. He added that Moldova would have avoided the crisis of 2014-2015 if it had a solid banking system. The project provides "a chance for the modernization of the banking system, which will have long-term effects".

Attending the event, Speaker Andrian Candu, said he had reservations at the very difficult moment for the banking sector at the project started, during the crisis, a lack of confidence, while today "we are talking about a project of success."

During the nearly 24 months of technical assistance, 56 activities were carried out with the involvement of 48 experts from the National Bank of Romania (BNR) and the National Bank of the Netherlands (NBN), which included 665 working days and 106 Missions to Moldova, Romania and the Netherlands. There participated 50 experts from BNM, 11 banks, over 100 representatives of the banking sector.

The BNR’s Deputy Governor Liviu Voinea said that. over two years, it was drafted the text of a new banking law at European standards and of the Basel Committee on Banking Supervision. Also, 20 regulations were addressed to commercial banks, three impact studies were made that contributed to assessing banks' readiness to apply the new prudential rules. More than 100 training sessions of the BNM took place, including study visits at the headquarters of the National Bank of Romania and the Central Bank of the Netherlands. "Perhaps the most conclusive ingredient of success is trust. We see in this project the chance to regain confidence in banks, said Voinea.

The project aims to support BNM in consolidating the prudential supervision framework by harmonizing with the standards of the EU central banks. The project also aimed to improve banking legislation for asserting a solid and competitive banking sector.

Even if the project’s direct beneficiaries are BNM and the licensed banks in Moldova, the final beneficiaries will be Moldovan citizens to enjoy a viable, stable and secure banking system, said Cristina Harea, the BNM’s vice-governor. The project implementation will not only lead to the banking system modernization but also to better banking supervision.

A similar event took place recently in Bucharest. The first findings showed that the results of the project implemented by BNM are conclusive. Several success stories were noted, including elaboration of a new banking law, being the next stage of reforming the Moldovan banking sector.

(Reporter V. Bercu, editor M. Jantovan)