Moldovan national bank imposes sanctions on bank’s administrators

Chisinau, 12 July /MOLDPRES/ – The Executive Committee of the National Bank of Moldova (BNM) decided at its meeting on 29 June 2017, to apply the sanction of fine to six members of the management board of commercial bank Moldova-Agroindbank S.A.. The sanction was applied following the examination of the results of the complex control on the performed field at this bank by BNM, the BNM 's communication and press service has reported.

The total amount of the fines is MDL 760,673.

Also, the members of the Board of Directors and the Board of the Bank were sanctioned with a warning. They were warned against the non-admission of violations of normative acts and the possibility of applying more severe sanctions in case of non-discharging of the established violations or repeated committing them within the established term.

The sanctions were enforced as a result of the violation of the provisions of the Law on Financial Institutions and the normative acts of BNM, identified for the period of control, in the activity of "Moldova-Agroindbank" S.A. Infringements mainly relate to the bank's failure to meet the prudential requirements specific to lending activity, risk concentration, asset classification, etc. Similarly, violations found did not lead to non-observance of the prudential limits set by BNM and therefore there were no major risks that could affect the stability of the bank.

The National Bank mandated the Council and the Management Committee of "Moldova-Agroindbank" S.A. to improve the internal control system for lending activity, to strengthen the corporate governance within the bank, develop and implement an action plan on elimination of the shortcomings found in the complex field control performed at the bank, says the BNM’s press release.