Office of the IMF
Chisinau, Republic of Moldova
Bank FSAP Mission Concluded Its Work
on October 12
An IMF/World Bank team headed by Ms. Judit Vadasz has performed an assessment
of Moldova’s financial sector during October 1-12, 2007.
The mission met with the First Deputy Prime Minister, the Minister of Economy
and Trade, the Minister of Finance, the management and staff of the National
Bank of Moldova, the National Commission of the Financial Market, the Moldova
Stock Exchange, the National Securities Depositary, the Licensing Chamber, the
Parliament’s Commission on Economy, Budget, and Finance, as well as
representatives of most Moldovan banks, key actors in the insurance, securities,
and audit market, representatives of USAID and the European Commission’s
Delegation to Moldova.
The mission was pleased to conclude that, overall, the financial sector, and
particularly the banking sector, has undergone positive evolution since the 2004
FSAP. Nevertheless, the macroeconomic environment, particularly the dependence
on remittances, inflationary pressures, vulnerability to sharp increases in
energy prices, and rapid credit growth could pose some risks to the financial
The mission has found that developmental needs of the financial sector as a
whole are substantial, as evidenced by lagging benchmarks against Moldova’s more
advanced peers. The share of the financial sector in the economy is small,
markets are shallow, and some elements of the infrastructure are missing. These
indicators are much worse for the insurance and the securities sector than for
banking. The mission hopes that these issues will be tackled closely once the
newly established National Commission on Financial Markets (NFCM) will reach its
The mission has noted that the NBM has been trying to solve the bank
ownership issues raised during the 2004 FSAP as a significant vulnerability and
achieved partial success. Allowing the purchase of domestic banks by reputable
foreign investors is an encouraging sign, although the privatization of Banca de
economii has been lagging.
Another conclusion of the mission was that major improvements have been
registered during the Basel Core Principles Assessment if compared to the 2004
The assessment the mission performed indicated that the recently revamped
payment system architecture constitutes a welcome step forward. The new
Interbank Payment System (AIPS) has been completed and the full assessment of
the BIS Principles for Systemically Important Payment Systems found that the
large majority of the core principles are fully observed.
The mission will produce a full report including its findings and policy
recommendations that will be shared with the authorities in due course.
October 16, 2007