Financial Stability Committee of Moldova to be reorganized, its activity to be regulated by law

12:21 | 14.07.2018 Category: Economic

Chisinau, 14 July /MOLDPRES/ - The Financial Stability Committee will be reorganized and its activity will be regulated by law, under a draft presented by the Finance Ministry for public consultations. The reorganization is provided for in the national action plan for the implementation of the Moldova – European Union Association Agreement in 2017-2019.

According to the draft, the National Financial Stability Committee (CNSF) is a national authority in charge of coordinating the carrying out of the prudential policy at the macro level, as well as of the prevention, reduction or elimination of risks threatening the financial stability at the level of system and management of the systemic financial crisis situations.

The draft law sets the framework, duties and responsibilities of CNSF, in order to reduce the risks threatening the financial stability, as well as to coordinate the process of managing systemic crises. “The financial stability is a condition in which the financial system can resists to shocks without disturbing the activity of intermediation and efficient allocation of savings to capital investments,” the Finance Ministry said.

The role of the Financial Stability Committee is to identify, monitor and recommend the actions needed to remove or reduce the systemic risks. The Committee’s powers were taken over from the National Financial Stability Committee, set up under a cabinet decision from June 2010.

The Committee will be made up of the governor of the National Bank of Moldova (BNM), Finance Minister, Economics and Infrastructure Minister, the head of the National Financial Market Commission and, in the context of considering aspects related to the preparation and management of crisis situations, a representative of the Fund of Guaranteeing Deposits in the Banking System. In its enlarged form, more BNM representatives will be members of the Committee.

Following the consultations, the draft law is to be approved by the government and afterwards submitted to parliament for adoption.

(Reporter V. Bercu, editor L. Alcaza)

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