Moldovan government approves draft law on National Committee on Financial Stability

16:23 | 18.07.2018 Category: Economic

Chisinau, 18 July /MOLDPRES/ - The cabinet of ministers, at a today’s meeting, approved a draft law on the Committee on Financial Stability (CNSF). The Committee’s reorganization is provided for in the action plan for the implementation of the Moldova – European Union Association Agreement for 2017-2019.

„The draft law was worked out to set up the national authority in charge of coordinating the prudential policy at macro level, as well as of the prevention, reducing and removing the risks threatening the financial stability at the system level and management of situations of systemic financial crisis,” Finance Minister Octavian Armasu said.

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

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

The Committee is 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 mobilization for and management of crisis situations, - one representative of the Fund of Guaranteeing Deposits in the Banking System. In its enlarged format, more representations of BNM will be members of the Committee.

The draft law will be submitted to parliament for consideration and adoption.

(Reporter V. Bercu, editor L. Alcaza)

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