World Bank2013-09-302013-09-302005-03https://hdl.handle.net/10986/15938The Financial Sector Assessment Program (FSAP) team produced an Aide Memoire and the following three detailed reports that were reviewed by and delivered to the authorities: 1) technical notes; 2) assessment of compliance with standards and codes; and 3) detailed bank-by-bank stress tests. The Anti-Money Laundering and Combating the Financing of Terrorism (AML/CFT) section of the report was based on the report of an International Monetary Fund (IMF) technical assistance mission undertaken in April 2004. Although Moldova is the poorest country in Europe, measured by per capita Gross Domestic Product (GDP), the country has achieved some success in building up the framework of a functioning market economy, especially in the banking sector. In addition to the underlying structural weaknesses, there are several potential macroeconomic problems that increase the vulnerability of the financial system. These include: a) the direct financing of the state budget by the central bank against the background of the weak fiscal and external situation; b) dependency on remittances; and c) dollarization, in combination with significant exchange rate volatility.en-USCC BY 3.0 IGOACCESS TO CREDITACCESS TO FINANCEACCOUNTABILITYACCOUNTINGADMINISTRATIVE BURDENSAFFILIATESANTI-MONEY LAUNDERINGARREARSASSET CLASSIFICATIONAUDITINGBALANCE SHEETBALANCE SHEETSBANK CREDITBANK CREDITSBANK LENDINGBANK POLICYBANK REGULATIONBANK SUPERVISIONBANK SUPERVISORSBANKING LAWBANKING SECTORBANKING SUPERVISIONBANKING SYSTEMBANKSBORROWERBUSINESS PLANCAPITAL ADEQUACYCAPITAL ADEQUACY RATIOSCAPITAL MARKETSCAPITAL REQUIREMENTSCAPITALIZATIONCASH FLOWSCENTRAL BANKCENTRAL BANKINGCLASSIFIED LOANSCOLLATERALCOLLATERAL LAWSCOMMERCIAL BANKCOMMERCIAL BANKSCOMPLIANCE COSTSCONNECTED LENDINGCONSOLIDATED SUPERVISIONCONSOLIDATIONCONTINGENCY PLANSCORPORATE GOVERNANCECOUNTRY RISKCOUNTRY RISKSCREDIT APPROVALCREDIT ASSOCIATIONSCREDIT COOPERATIVESCREDIT GROWTHCREDIT LINESCREDIT RATINGSCREDIT RISKCURRENCYCURRENCY BASKETDEBTDEBT MANAGEMENTDEBT PAYMENTSDEPOSITDEPOSIT INSURANCEDEPOSIT-TAKING INSTITUTIONSDEPOSITORDEPOSITORSDEPOSITSDIRECT FINANCINGDISCLOSURE REQUIREMENTSDOMESTIC CURRENCYDUE DILIGENCEEARNINGSECONOMIC ACTIVITYENTERPRISE PERFORMANCEEQUITY FUNDSEQUITY INVESTORSEQUITY RATIOSEXCHANGE RATEEXCHANGE RATESEXPORTERSEXTERNAL DEBTEXTERNAL FINANCINGEXTERNAL SHOCKSFINANCE CORPORATIONFINANCESFINANCIAL CRISISFINANCIAL INSTITUTIONSFINANCIAL INTERMEDIATIONFINANCIAL SECTORFINANCIAL SECTOR ASSESSMENTFINANCIAL STABILITYFINANCIAL SYSTEMFINANCING NEEDSFISCAL POLICIESFOREIGN BANKSFOREIGN CURRENCYFOREIGN CURRENCY DEPOSITSFOREIGN CURRENCY LOANSFOREIGN EXCHANGEFOREIGN EXCHANGE RISKGOVERNMENT OWNERSHIPGOVERNMENT SECURITIESGOVERNMENT SECURITIES MARKETGROSS SETTLEMENT SYSTEMHOLDINGHOLDINGSHOUSEHOLD DEBTILLIQUIDITYINCOMEINFLATIONINFORMATION SHARINGINSIDER LENDINGINSURANCEINSURANCE COMPANIESINSURANCE COMPANYINSURANCE INDUSTRYINSURANCE PENETRATIONINSURANCE PRODUCTSINSURANCE PROTECTIONINTEREST RATEINTEREST RATE CHANGESINTEREST RATESINTERNAL CONTROLSINTERNATIONAL STANDARDSINVESTMENT FUNDINVESTOR BASEJOINT-STOCK COMPANIESLARGE BORROWERSLAWSLEGAL AUTHORITYLEGAL FRAMEWORKLEGAL INFRASTRUCTURELEGAL PROTECTIONLEGISLATIONLEGISLATIVE FRAMEWORKLENDING CYCLELIFE INSURANCELIQUID SECONDARY MARKETLIQUIDATIONLIQUIDITY CRISISLIQUIDITY MANAGEMENTLOANLOAN CLASSIFICATIONLOAN CONCENTRATIONSLOAN LOSS PROVISIONSLOAN PORTFOLIOLONG-TERM CAPITALLONG-TERM RESOURCESMACROECONOMIC ENVIRONMENTMACROECONOMIC RISKMARKET COMPETITIONMARKET ECONOMYMARKET FOR GOVERNMENT SECURITIESMARKET INTEREST RATESMARKET PRACTICESMARKET RISKMARKET RISKSMATURITIESMATURITYMICROFINANCEMICROFINANCE INSTITUTIONSMICROFINANCE SECTORSMONETARY POLICYMULTINATIONALMULTINATIONAL BANKSNATIONAL BANKNATIONAL SECURITIESNONPERFORMING LOANSNPLOPEN ECONOMYOPERATIONAL INDEPENDENCEOWNERSHIP STRUCTUREPAYMENT OBLIGATIONSPAYMENT SYSTEMPRIMARY MARKETPRIVATE BANKSPRIVATIZATIONPRUDENTIAL REGULATIONPRUDENTIAL REGULATIONSPRUDENTIAL REQUIREMENTSPRUDENTIAL SUPERVISIONRAPID GROWTHREGULATORY FRAMEWORKREMITTANCESREPAYMENTRESERVERESERVE REQUIREMENTRESERVE REQUIREMENTSRESERVESRETURNRETURN ON ASSETSRETURN ON EQUITYRISK EXPOSURESRISK MANAGEMENTRURAL FINANCESAVINGSSECONDARY MARKETSECURITIESSETTLEMENTSETTLEMENT SYSTEMSSHAREHOLDERSHAREHOLDERSSMALL LOANSSOCIAL FUNDSTATE INTERVENTIONSTOCK MARKETSTRATEGIC INVESTORSTRATEGIC INVESTORSSUBSIDIARIESSUBSIDIARYSUPERVISORY AUTHORITYSUPERVISORY BOARDSVERIGES RIKSBANKSYSTEMIC RISKTAXTECHNICAL ASSISTANCETERRORISMTRANSITION ECONOMIESTRANSPARENCYUNIONUNSECURED CREDITORSVOLATILITYWAGESWITHDRAWALWorld Bank10.1596/15938