
The National Bank of Moldova (NBM) recommended that commercial banks continue to refrain from paying dividends.
As noted in the message of the NBM, it recommended that licensed banks continue to refrain from paying dividends to shareholders and redeeming instruments of their own funds until the audit companies submit an audit of financial statements at the end of 2020.The corresponding decision was approved by the NBM to ensure the stability and viability of banks in the context of the negative consequences of the COVID-19 pandemic, manifested in the current year, and the prospects for the spread of the pandemic. As noted by the NBM, ensuring an adequate level of own funds and liquid assets in the context of promoting an adequate risk management policy will allow licensed banks to support lending to the real sector of the economy. It should be noted that at the beginning of April this year. The National Bank approved a decision recommending banks to refrain from paying dividends to shareholders until at least September 30. The decision was adopted in the context of mitigating the impact of the COVID-19 pandemic to ensure that banks are sufficiently well capitalized, stable and with a high level of caution. It was noted that, thus, canned capital can be used to absorb possible shocks and support financing of the business environment and the population. At the same meeting, measures were taken to ease the requirements for capital buffers, which had a double effect: to support lending to the private sector to stimulate the economy and to cover possible losses. Thus, the NBM offered banks to temporarily use the previously established capital conservation buffer. Banks were encouraged to continue to promote appropriate policies to recognize and cover unfavorable exposures, and to implement sound capital and liquidity planning and sound risk management. Since March 17, when the state of emergency was declared in Molodva, the National Bank has taken a number of measures aimed at mitigating the impact of the coronavirus pandemic on the population and the business environment. // 11.12.2020 - InfoMarket.