NBM GOVERNOR: RULE REQUIRING NBM PERMISSION FOR OWNERSHIP OF MORE THAN 1% IN A BANK IS TEMPORARY

The rule requiring approval from the central bank for ownership of shares exceeding 1% in Moldovan banks is temporary. As reported by the INFOTAG agency, National Bank (NBM) Governor Anca Dragu stated this in an interview given to Reuters during the Capital-Bridge financial forum held on Wednesday by the Moldovan bank MAIB in Bucharest.

According to the bancher, this rule was lucrative but may be repealed this year as the country seeks to stimulate capital markets.

Trust in Moldova has been severely affected by the fraud scandal in which $1 billion disappeared from the Moldovan banking system in 2014–2015. The rule requiring NBM approval for ownership stakes exceeding 1% in a bank was introduced as a temporary measure to improve transparency and governance following the theft of $1 billion.

“This is a stringent restrictive measure of a temporary nature until the NBM has the tools to ensure the integrity of the banking system,” Dragu said.

The repeal of the 1% restrictive rule will help facilitate the planned initial public offering of shares on the Bucharest Stock Exchange by MAIB, Moldova's largest bank.