It should be noted that the FSAP is a key instrument of IMF supervision over the financial stability of its members and is conducted periodically on a mandatory and optional basis. In developing countries, customized missions are conducted jointly with the World Bank, taking into account the development of the financial system. Recommendations submitted to national authorities are confidential and published by each country on a voluntary basis.
As stated in the Fund’s accompanying note, “this year’s FSAP in Moldova is being conducted against the backdrop of economic recovery from the adverse effects of the war in Ukraine, albeit with risks to inflation and growth arising from the materialization of risks in the energy sector.”
FSAP experts assessed the adequacy of solvency and liquidity of the banking sector in stress scenarios, the interconnectedness in the financial system, the appropriateness of the macroprudential policy and its instruments. The effectiveness of NBM regulation and supervision of banks, financial integrity risks for the financial sector and the operational readiness of financial safety nets were also checked.
The last FSAP financial soundness assessment mission was conducted in Moldova in 2014. This year’s mission came at the invitation of the Moldovan side.
