National Bank of Moldova to have new competences

Chisinau, 15 November /MOLDPRES/ - The National Bank of Moldova (BNM) will have additional competences. The institution will be able to ban the banks from distributing their own funds, in certain conditions. Thus, a new standard indicator will be introduced – maximal sum distributed, which will be calculated by BNM.     

A draft law worked out by the National Bank of Moldova, with the participation of World Bank’s experts, has been unveiled in the parliament’s plenum by MP Radu Marian and approved in the first reading.  

The document provides for the consolidation of the institutions’ capacities to act in case a banking institution faces a major difficulty. The provisions regard the instrument of internal recapitalization, which has the goal to guarantee the fact that the banks have a sufficient capacity of absorption of the recapitalization losses.  

At the same time, the document specifies the conditions of financing during the enforcement of resolution facilities, at the expense of the resolution fund and the fund for covering bank deposits.  

Thus, the legislation on the redressal and resolution of banks will be completed with two distinct notions – ‘’debts which can be the object of internal recapitalization’’ and ‘’eligible debts.’’   

Also, the document sees that the National Bank of Moldova will be able to ban the banks from distributing their own funds, in certain conditions. Thus, a new standard indicator will be introduced – maximal sum distributed. It will be calculated by BNM. Another competence regards the imposing of the suspension of payment or delivery obligations from any contract to which the bank is party, in certain specific conditions, at a stage preceding the resolution actions.