World of nonbank crediting organizations to be regulated by new law in Moldova

Chisinau, 8 February /MOLDPRES/ - The work of the nonbank crediting organizations will be regulated by a new law. The draft’s goal is to re-edify the legal framework in terms of nonbank crediting and was adopted by the parliament in the final reading today.

The draft was proposed by the National Commission for Financial Market (CNPF) and is aimed at re-edifying the legal framework in terms of non-bank crediting and, implicitly, at reorganizing the market entities and operators, as well as re-calibrating this sector, through diminishing the systemic risks and protecting the rights of consumers of services, especially the limited supervision of these organizations, minimum regulation of the demand for registered share capital and private capital, conditions for composite activity, requirements for classifying the loans and formation of commissions for losses, mechanism of protection of beneficiaries of nonbank crediting products and leasing.  

The document regulates the peculiarities of foundation and work of the nonbank crediting organizations, including the kinds of basic professional activities allowed to them. In particular, the law provides for the procedure of issuance of a preliminary notification before the registration in the state register of legal entities and subsequently the registration in the register of authorized nonbank crediting organizations, held by CNPF.  

Also, the law established the requirement concerning the minimum admissible size of the private capital of five per cent of the assets’ value. The document also sees compulsory carrying out of the audit, if the overall value of the assets exceeds 25 million lei. Exigencies for managers are set too. The draft also provides for other prudential and non-prudential requirements before the nonbank crediting organizations.   

According to the amendments, the nonbank crediting organizations, just as other professional participants in the securities market, will pay a regulatory bill worth up to 0.1 per cent of the annual average size of the balance of nonbank loans and the financial leasing recorded, but no more than 200,000 lei.     

At present, over 130 micro-financing organizations work on the Moldovan market.  

The MPs of the factions of the Party of Socialists and Party of Communists boycotted the today’s parliament plenary meeting, discontented with the fact that the drafts they had put forward for the agenda were not backed.  

(Reporter A. Zara, editor A. Raileanu)