The first information on the IMF’s and the World Bank’s extensive study of the Moldovan financial system for resilience to shocks and the quality of the central bank’s governance, the FSAP, was made public today. The assessment has been conducted since last year at the initiative of the Moldovan side, the disclosure of the results of which is optional.
Nevertheless, the NBM publishes the IMF report on the transparency of the NBM, without making public the results of the assessment of the financial system itself. The analysis of the Moldovan central bank’s compliance with international best practices is based on the principles regulated by the Fund: governance, policies, operations, results and official contacts.
In the area of governance, the IMF report emphasizes that NBM “provides detailed information on its legal structure, powers and governance”, while “the Code of Conduct and anti-corruption measures applied to NBM’s governance are clear and easily accessible”. It is also noted that the NBM “comprehensively provided IMF experts with information on risk exposure, transparency of supervisory arrangements, financial reporting practices and external audit mechanism, and transparency of internal audit arrangements”.
Regarding the transparency of policies, operations and results, the IMF mission noted the following:
- NBM’s monetary policy framework is well presented;
- NBM has significantly improved the transparency of its monetary policy;
- policy objectives, legal and institutional framework for managing foreign exchange turnover and regulating cross-border financial flows are clearly defined and presented;
- the instruments for implementing the policy for managing cross-border capital flows and foreign exchange, including the regulatory framework, licenses, reports, monitoring and enforcement tools, and foreign exchange transactions, are clearly defined and presented;
- the transparency of the NBM Emergency Liquidity Assistance (ELA) system has significantly improved with the publication of the NBM Regulation on Emergency Liquidity Assistance.
At the same time, areas for improvement have been identified in order to further enhance the transparency of the central bank’s activity. To this end, the NBM will implement a number of key IMF recommendations.
