Moldovan parliament adopts law on banks' work in first reading

Chisinau, 13 July /MOLDPRES/ - The parliament today voted, in the first reading, a draft on the modernization of the standards on the regulation and supervision in the banking system – the law on the work of banks, the communication and press service of the National Bank of Moldova (BNM) has reported.   

The document is set to create a coherent and consolidated legislative framework, which is to allow an efficient management and supervision of banks from  Moldova. The draft sees the creation of a robust framework of corporate governance in banks and introduction of a string of new requirements for the assessment and quantifying of risks by the banks. At the same time, the draft will develop instruments of supervision necessary for the prevention and minimizing of eventual deficiencies in the banks’ activity at the first stages. Besides, the draft will generate the adjusting of the national legislation on banks to the international standards and principles, etc.      

“A better managed and supervised banking system provides eventually also a higher safety to depositors and consumers. This draft law is the fruit of a two-year-long work of a BNM team and European experts within a technical assistance project. The draft’s aim is to improve the national banking legislation according to the best international practices on the activity of licencing, regulation and supervision of banks,” said BNM Vice Governor Cristina Harea, who unveiled the draft in parliament today.      

The draft law sets the switch to the principles BASEL III through harmonization with the European Union’s legislation and was elaborated with EU’s financing, within the Twinning project.