The National Bank of Moldova (NBM) has defined and published its supervisory priorities in the field of non-bank credit activity for 2024.
The matter concerns the supervision of non-bank credit organizations and savings and loan associations. According to the National Bank's communication, in order to ensure the stability of the sector and prevent the risks related to it, the NBM will continue to strengthen its supervisory capacity, assessing the compliance with the regulatory framework, in order to prevent and limit the risks specific to non-banking credit activities, in order to ensure the sustainable development of the sector. Based on the results of the assessment of the main risks associated with non-bank credit activities, the following supervisory priorities were identified for 2024: compliance with the regulatory framework and risk assessment of non-bank credit activities; reporting process and data analysis at individual and consolidated level; prevention and combating money laundering and terrorist financing. In particular, in order to prevent and/or detect possible adverse trends in the activities of organizations in the non-bank lending sector, the National Bank will verify compliance with the requirements established by the current regulatory framework and internal regulations of the respective organizations. At the same time, the National Bank will analyze the main performance indicators of the entities of the non-bank credit sector, paying special attention to the following components: business model; management and internal control; associated risks (credit risk, operational risk, market risk); capital adequacy. Thus, attention will be paid to risk management practices, in particular with regard to the identification, measurement and mitigation of specific risks, as well as aspects related to the segregation of duties and independence of control functions, the full composition of the governing bodies, as provided for by statute and legislation. The NBM emphasizes that credit risk remains an important aspect to be assessed in the supervision of the non-banking credit sector. In this regard, increased attention will be paid to the compliance with the requirements of responsible lending and procedures for granting and monitoring credits, as well as to the process of repayment of credits, in particular unsecured credits granted without material collateral. The National Bank also points out that the quality and insufficiency of reporting data is an urgent problem affecting the ability of the National Bank to analyze and evaluate both individual positions of entities in the non-bank lending sector and to analyze the sector as a whole. Thus, in 2024, the National Bank is expected to approve amendments to the Instructions on Reporting aimed at improving the quality of the reporting process, with a special focus on verifying the correctness of data reflection in specific reports, as well as compliance with reporting deadlines by reporting entities. Regarding the priority of preventing and combating money laundering and terrorism financing, the NBM stated that it will continue the identification and assessment of risks related to non-banking credit sector organizations and will further apply a risk-oriented approach in supervising them. Within the framework of supervisory actions, the general objectives will cover issues related to the business model, size, nature, scope and complexity of the organization's activities; internal management and internal control system at the level of money laundering and terrorist financing prevention activities; application of the provisions of the legal and regulatory framework in the field of prevention and combating money laundering and terrorist financing; source of funds used in the activities carried out, etc. At the same time, in order to raise awareness and continuous education in the supervised organizations in order to improve knowledge and skills for effective risk management and change of legislation in the field of prevention and combating money laundering and terrorist financing, information sessions will be held with the specialists of these organizations. // 19.01.2024 - InfoMarket.
