GOVERNMENT APPROVES BILL ON BANK ACTIVITY

The Government approved on Friday the draft law on banking activity, which will replace the current Law on financial institutions.

The document implies international standards and practices regarding the process of licensing, regulation and supervision, conducted by the National Bank of Moldova (NBM) and meets legal provisions, developed and adopted in accordance with the International Monetary Fund (IMF) recommendations.

The bill provides the extension of NBM rights and powers in the process of bank control, as well as the raising and diversification of sanctions, which may be applied to banks.

The draft law also contains some deviations from the law on joint-stock companies, in relation to the general shareholder meeting, the Board of Directors and the executive power, as well as exclusion of the audit committee from the list of bank managing bodies.

Another change concerns the capital adequacy of banks in relations to risks they face.

Infotag’s dossier: The draft law on bank activity was developed within TWINNING project, whose main goal was to strengthen NBM potential in the field of bank supervision in accordance with EU requirements and standards. The two-year project was implemented with financial assistance of the EU and with support of national banks of the Netherlands and Romania.