The legislation will be amended to strengthen the independence of the National Bank of Moldova and members of its governing bodies.
This is provided for by draft amendments to the regulatory framework, developed by the Ministry of Finance and the National Bank of Moldova (NBM). In particular, the Law on National Bank will be amended to ensure independence of the NBM from any third parties - they will not be able to instruct the National Bank or influence the members of its governing bodies in their work. It is also proposed to abolish the provision whereby ministers responsible for economic and financial affairs may attend meetings of the Supervisory Board and the Executive Committee without the voting right. The legal framework is strengthened in order to avoid interference that could jeopardize the operation of the National Bank and the achievement of its objectives, as well as to ensure compliance with international standards. The draft law contains new provisions which are meant to strengthen the macroprudential mandate of NBM. Thus, NBM will be empowered to develop a macroprudential policy strategy for areas within its competence; the powers of NBM to reduce macroprudential or systemic risk will be regulated, as well as to ensure transparency of decision making in case of adoption of such instruments. Amendments are proposed to the procedures of exercising the powers of the governing bodies of NBM and the procedure of their resignation; the powers of the head of the National Bank and the Executive Committee are delimited; procedures regarding the rehabilitation and bailouts of banks are specified; the powers of the Supervisory Board of NBM, including on initiatives related to the public property owned by the National Bank, are extended. The draft law proposes to extend the term of forced liquidation of banks. In particular, if the process of the forcible liquidation of a bank was not completed in time, the term of liquidation could be extended by the National Bank not for 2 years, as it is stipulated today, but for 5 years maximum. This change was required, as the banks to be liquidated could not capitalize all their assets within the prescribed period, including the period of lawsuits and trials. Accordingly, the liquidation process is delayed. The proposed amendments would allow the National Bank, depending on the circumstances referred to by the liquidator, to extend the term of bank liquidation or complete it. One of the provisions of the draft law provides for empowering the National Bank to sell numismatic items (coins/banks) directly through the operating cash desk (NBM window), etc. The draft law contains amendments taking into account the provisions of the Administrative Code, which took effect in April 2019. The proposed changes are designed to strengthen the legal framework applicable to NBM activities, taking into account international standards applicable to central banks; they will improve the regulatory framework related to banking operations, foreign exchange office, will strengthen the independence of NBM and the role of the regulator in performing its main duties. According to Moldova's commitments, the bill is to be approved by June 30. The full text of the draft is available at https://bit.ly/3NwOWpH. // 28.06.2022 - InfoMarket
