EU TO SUPPORT TWINNING PROJECT IMPLEMENTATION FOR INTRODUCING BASEL-3 STANDARDS

Ambassador Peter Michalko, Head of the European Union Delegation to Moldova welcomed the quality improvement of Moldovan banks shareholder structure, achieved as a result of reforming the financial sector and bank invigoration.

In his welcoming address to participants of the Thursday’s seminar “Reforms in Banking System: Transition to Basel 3 from Basel 1” in Chisinau, the diplomat said that the Moldova’s banking sector is going through a difficult transformation starting from the 2015 crisis to the implementation of Basel-3 standards.

“The goal of the conducted transformations consists of returning strategic investors with good repute to Moldova. An example of such a success is the coming of the Romania’s second largest bank to the Victoriabank”, he said.

The EU Delegation head said that the beginning of introducing Basel-3 standards in Moldova’s banking system is a very important step forward.

“I congratulate the NBM leadership on this. Since the beginning of 2018, the banking system is functioning differently. We hope that all the normative acts for efficient supervision of banking sector will be adopted in time”, Michalko said, adding that the EU, IMF, EBRD will keep supporting the banking sector reforms, including financial and technical assistance.

The diplomat said that the EU will provide financial assistance in implementing new Twinning project. Its target destination is to implement Basel-3 standards in practice. Besides, the EU will provide assistance to the National Commission for Financial Market in monitoring and supervising the activity of nonbank credit institutions.

“The European Union welcomes the new law on nonbank institutions, which will enter into force in autumn. However, some of its provisions do not correspond to best European practices, thus these should be corrected”, Michalko said, positively assessing the openness of Moldova’s economic and financial authorities in implementing EU standards for regulating the financial and banking sector.