National Bank of Moldova

Regulatory Bank

As the central bank of Moldova, the bank is the primary regulator in the industry, with the authority to issue and withdraw banking licenses and regulate and supervise the banking sector.

Assistance from the IMF and various changes to banking in Moldova resulted in major improvements in the sector. The IMF reported in 2023 that Banks remain adequately capitalised, maintain adequate liquidity coverage and healthy asset quality.

The National Bank of Moldova as the central bank, also controls interest rates and the exchange rate of the Moldovan leu.

Laws passed by the parliament are supplemented by secondary legislation consisting of regulations and decisions issued by the National Bank of Moldova.

History

Following the passing of legislation in 1991, a two-level banking system was formed with the National Bank of Moldova acting as the central bank and being banned from commercial banking activities. Leonid Talmaci was appointed Governor, he would hold office for 18 years and oversee the 1995 banking legislation that would cover the central bank and banking institutions.

Following the collapse of the Soviet Union and the Moldovan Declaration of Independence in 1991, January 1992 saw Moldova began a market economy, however the freeing of price restraints resulted in rapid inflation and for a number of years the economy was in crisis. The country joined the IMF on 12 August 1992 and on 29 November 1993 a new currency was introduced, the Moldovan leu.

2001 saw an improvement in the economy with steady annual growth for a number of years.

As a result of a deliberate act, shortly before the 2014 Moldovan parliamentary election, a bank fraud took place involving three banks. Over a three day period, funds worth $1 billion were transferred to United Kingdom and Hong Kong shell companies used to conceal the real owners of assets, then deposited into Latvian bank accounts under the names of various foreigners. An independent investigation appointed by the National Bank of Moldova concluded the three banks transferred at least 13.5 billion lei to five Moldovan companies affiliated with the Shor group, controlled by Ilan Șor. The fraud nearly bankrupted Moldova. On 13 April 2023, a court sentenced Șor to 15 in years in prison in absentia on graft charges and froze all his assets.

In December 2023 the Governor, Octavian Armașu, having been criticised in Parliament for failing to recover stolen financial assets and retaining in office bank employees who were accused in the banking fraud case, was dismissed. In a June 2024 report, the European Commission described Armașu's dismissal as sudden and unexpected, stating that "the procedure by which the former governor was dismissed is a cause for concern and may pose a risk to the independence of the central bank". The dismissal was likewise criticised by the International Monitary Fund (IMF). Armașu was succeeded by Anca Dragu. In November 2024, the Ministry of Finance put forth an amendment to remove Parliament's sole right to dismiss and approve the management of the banking authority.

Governors

References

References

1. (2017). "The Organisation and Structure of Central Banks".
2. Article 1 paragraph (1) of the [https://bnm.md/en/content/law-national-bank-moldova-no548-xiii-july-21-1995 Law of the Republic of Moldova on the National Bank of Moldova No. 548 of 21 July 1995]
3. Article 1 paragraph (2) of the [https://bnm.md/en/content/law-national-bank-moldova-no548-xiii-july-21-1995 Law of the Republic of Moldova on the National Bank of Moldova No. 548 of 21 July 1995]
4. Article 4 of the [https://bnm.md/en/content/law-national-bank-moldova-no548-xiii-july-21-1995 Law of the Republic of Moldova on the National Bank of Moldova No. 548 of 21 July 1995]
5. (12 January 2023). "Republic of Moldova: Second Reviews Under the Extended Credit Facility and Extended Fund Facility Arrangements, and Request for Waiver of Applicability for Performance Criteria-Press Release; Staff Report; and Statement by the Executive Director for Republic of Moldova".
6. (5 June 2023). "Banking & Finance in Moldova".
7. "Information regarding NBM".
8. [https://www.bbc.com/news/magazine-33166383 The great Moldovan bank robbery], [[BBC News]] (18 June 2015)
9. [https://www.bbc.com/news/magazine-34445201 The billion-dollar ex-council flat], [[BBC News]] (7 October 2015)
10. (10 December 2019). "Banking: Is Moldova unreformable".
11. Service, RFE/RL's Moldovan. "Moldovan Court Increases Fugitive Shor's Prison Sentence To 15 Years". Radiofreeeurope/Radioliberty.
12. (22 December 2023). "Romania's former finance minister Anca Dragu nominated for governor of Moldova's central bank".
13. (2024). "Report from the Commission to the European Parliament and the Council on the implementation of macro-financial assistance to third countries in 2023". [[European Commission]].
14. Străjescu, Carolina. (23 December 2023). "IMF cautious on Moldovan Central Bank shakeup". Radio Europa Liberă Moldova.
15. Dinu, Maria. (27 December 2023). "Dragu, după numirea în funcția de guvernator al Băncii Naționale a Moldovei: "Voi contribui la accelerarea parcursului european al țării"". [[Adevărul]].
16. (21 November 2024). "Parlamentul riscă să piardă dreptul de a demite conducerea BNM. Motivul". Știri.md.
17. [https://eleonora-lisnic.blogspot.com/2009/11/dorin-dragutanu-guvernator-al-bnm.html ''Dorin Drăguţanu, guvernator al BNM''] {{Webarchive. link. (2014-12-26 besøkt 30. november 2011. ([https://translate.google.com/translate?sl=ru&tl=no&js=n&prev=_t&hl=en&ie=UTF-8&layout=2&eotf=1&u=http%3A%2F%2Feleonora-lisnic.blogspot.com%2F2009%2F11%2Fdorin-dragutanu-guvernator-al-bnm.html Oversatt artikkel, Google Translate]))
18. (14 February 2019). "Restoring trust in Moldova's banking sector".
19. (22 December 2023). "POLITICĂ Armașu, înlocuit la BNM de o fostă ministră de Finanțe din România. Cine este Anca Dragu". NewsMaker.