The NBM has set the countercyclical buffer rate for exposures from loans located in Moldova at 0.5% of the value of the risk exposure
Previously, it had been maintained by the National Bank (NBM) at 0% of the value of the risk exposure for an extended period. According to the National Bank, its Executive Board set the countercyclical buffer rate for exposures from loans in Moldova at 0.5% of the risk exposure value, and this decision will take effect six months after its publication in Monitorul Oficial/the Official Journal of Moldova (July 30). As noted by the NBM, the Executive Board revised the countercyclical buffer rate, taking into account the buffer requirement at the end of the fourth quarter of 2024. Thus, in the fourth quarter of 2024, the ratio of private sector loans to GDP was 97.8%, and the deviation of the private sector loan-to-GDP ratio was positive at 2.7%. As noted by the NBM, the level of loans to the private sector relative to GDP indicates accelerated expansion of the financial sector, characterized by significant growth in lending, and based on the length of financial cycles in Moldova, the forecast for the reference value in the coming period, in order to increase the stability of the financial sector, the countercyclical buffer rate for the relevant risks in Moldova was set at 0.5%, to take effect six months after the publication of the decision. At the same time, in order to correctly calculate the countercyclical capital buffer inherent to a bank, banks must ensure adequate accounting of the countercyclical buffer rates applied to countries in which they have relevant exposures from loans. The decision to set the countercyclical buffer for exposures to loans located in Moldova at 0.5% of the value of the risk exposure was adopted by the National Bank based on analysis and research conducted by the NBM aimed at achieving the intermediate macro-prudential policy objective of reducing and preventing excessive credit growth in the banking sector. The countercyclical buffer in Moldova is reviewed quarterly. // 08.08.2025 – InfoMarket.
