Pressure on the National Bank from authorities and third parties should be excluded - Rodgers Chawani.
The IMF Resident Representative in Moldova stated this while speaking at the conference organized by the National Bank of Moldova (NBM) "The Role of a Central Bank in Modernizing Society - Challenges in Emerging Economies." Chawani noted that the NBM and the tax authorities of Moldova have adequately responded to the pandemic crisis, however, the recovery will be difficult. He outlined 7 priority areas to focus on in the post-pandemic period in order to rebuild Moldova's economy: anti-corruption, rule of law, regulation and legislation, tax administration, financial sector supervision, anti-money laundering and central bank independence. The IMF Resident Representative in Moldova pointed out that the independence of the Moldovan National Bank is under political pressure. “Despite the progress achieved in this area (and this concerns the strengthening of the legislative framework in the field of banking supervision and the powers of the NBM), the central bank of Moldova is still under pressure from the authorities - parliament and sometimes the executive branch, and this is a cause for concern. A strong legislative framework has also been developed in the field of combating money laundering, and the NBM provides supervision in this area, however, there are difficulties in identifying politically involved persons,” said the IMF Representative in Moldova. Chawani noted that in order to strengthen the independence of the NBM, it is necessary to ensure the normal functioning and capacity of the executive bodies of the NBM; provide adequate legal protection to the governing bodies and employees of the NBM in adopting decisions with a high degree of risk; to strengthen the institutional autonomy of the NBM, to make unbiased decisions in the field of monetary policy. As far as banking supervision is concerned, the key is to preserve and increase the achieved successes in the field of supervision of the financial sector, it is also necessary to continue to strengthen corporate governance in banks, to transfer supervision over the non-banking financial sector to the National Bank, etc. In addition, according to Chawani, it is important to strengthen inter-institutional interaction and cooperation in the fight against money laundering, improve standards in this area, as well as toughen sanctions for violations in the field of combating money laundering and terrorist financing. “A balance must be ensured between the independence and responsibility of the NBM: the central bank must perform its functions without prior political approval and interference from third parties, there must be personal independence of the National Bank's employees and their legal protection, and the financial independence of the NBM is also important,” stressed the IMF Resident Representative in Moldova. // 08.04.2021 – InfoMarket
