International Monetary FundWorld Bank2015-11-062015-11-062014-06https://hdl.handle.net/10986/22911This assessment of Moldova current state of compliance with the Basel core principles for effective banking supervision (BCPs) was undertaken as part of a joint International Monetary Fund (IMF) - World Bank mission in connection with a broader financial sector assessment program exercise. This version of the assessment has a greater focus on risk management policies and practices implemented by supervised institutions and their assessment by the supervisory authority as well as more emphasis on quality implementation of supervisory standards. The assessment has been conducted in accordance with the revised BCP assessment methodology approved by the Basel committee and was based on extensive discussions with officers and staff members of the Banking Supervision Department in National Bank of Moldova (NBM), and a review of internal supervisory documents, such as manuals, operating policies, examination reports, and external audit reports. The mission reviewed the BCP self-assessment undertaken by NBM preceding this assessment, and detailed responses to a questionnaire addressing supervisory issues. The assessment should provide the Moldovan authorities with an internationally consistent measure of quality of their banking supervision relative to the 2012 revision of the core principles, which are internationally recognized as minimum standards.en-USCC BY 3.0 IGOINTERNATIONAL ACCOUNTING STANDARDSACCOUNTING PRINCIPLESBANKING REGULATIONFINANCIAL SERVICESOPERATIONAL RISKLEGAL PROVISIONFINANCE MINISTRIESACCOUNTINGINTANGIBLE ASSETSDEPOSITSACCOUNTING PRACTICESCREDIT APPROVALPRINCIPALAUTONOMYBANKING INDUSTRYINTERESTBANK OFFICERSLAWSINTERNAL MANAGEMENT INFORMATIONNET REALIZABLE VALUEBANKING SERVICESBANKING SYSTEMSCAPITAL ADEQUACYREORGANIZATIONCONNECTED LENDINGBISPRICINGPROJECTSECONOMIC STABILITYFOREIGN EXCHANGE MARKETSDIVIDEND POLICYAUDITSBUDGETARY PROCESSESPRESENT VALUEEQUITY CAPITALTECHNICAL ASSISTANCEPENALTIESLEGAL PROVISIONSSETTLEMENT SYSTEMSACCOUNTING POLICIESCHECKINGTRANSFERSRECAPITALIZATIONFINANCIAL INSTITUTIONSDEBTMARKETSDEPOSIT INSURANCEBANK LIQUIDITYLABORENTERPRISESENFORCEMENT POWERSINVENTORYLEGAL FRAMEWORKASSET CLASSIFICATIONGRANTSINFRASTRUCTUREBANKING SECTORBANKSBANKING RISKSSUPERVISORY AUTHORITIESOPERATIONAL RISKSCAPITALAUDITORSSOVEREIGN RISKCREDIT CONTROLBANK FAILURESLOAN LOSS PROVISIONSOFF BALANCE SHEETBANKLENDER OF LAST RESORTMANAGEMENT INFORMATION SYSTEMSPRUDENTIAL REGULATIONSBANKING LAWSFINANCIAL PERFORMANCEMARKET DISCIPLINELOCAL PUBLIC ADMINISTRATIONFACE VALUESUPERVISORY AGENCIESMARKET RISKTIER 1 CAPITALSUBSIDIARYCREDIT RISKGOVERNANCELIQUIDATION VALUEPROFITABILITYINSURANCEMICROFINANCELANDACCOUNTING STANDARDSLOAN REVIEWSBANK MANAGEMENTCOMMERCIAL BANKSCAPITAL REQUIREMENTACCOUNTING PROCEDURESRISK TAKINGALMTAX ADMINISTRATIONON SITE EXAMINATIONLENDINGLIQUIDITY RATIOBANKING SUPERVISIONMATURITIESPROBLEM BANKSBANKING LAWLIQUID ASSETSBANK EXPOSURECONSOLIDATIONCONSOLIDATED SUPERVISIONEXTERNAL AUDITORSASSET TRANSFERSCAPITAL MARKETSHOLDING COMPANIESREGULATORY FRAMEWORKSMALL BANKSLIQUIDATIONGUARANTEESAFFILIATED COMPANIESINDUSTRYBANKING SYSTEMCAPITAL BASESTRATEGIESSERVICESLOAN COMMITMENTSCREDIT RISK MANAGEMENTBOOK VALUEMACROECONOMIC CONDITIONSLOAN CLASSIFICATIONASSET MANAGEMENTCENTRAL BANKSMANAGEMENT REPORTSADEQUATE DISCLOSUREINFLATIONCAPITAL PLANNINGBUDGETBANK COMPLIANCESAVINGSFINANCIAL STRENGTHFINANCIAL DATAINTEREST RATESMIGRATIONCRITERIACAPITAL REQUIREMENTSLEGISLATIONLOANSFINANCIAL REPORTING PERIODREAL SECTORFINANCERATING AGENCIESEQUITYRISK WEIGHTED ASSETSACCOUNTABILITYSYSTEMIC RISKFINANCIAL STABILITYINTERNATIONAL AUDITING STANDARDSSUBSIDIARIESVALUECREDITCOLLATERALIZATIONEQUITY INVESTMENTSPEER REVIEWSUPERVISORY FRAMEWORKINTERNAL CONTROLSMANDATESPROPERTYFOREIGN BANKSAFFILIATESBALANCE SHEETSUPERVISORY SANCTIONSFOREIGN EXCHANGEMARKET VALUECREDIT POLICIESCONSOLIDATED FINANCIAL STATEMENTSRISK FACTORSNEW ENTRANTSTHE NATIONAL BANK OF MOLDOVAPRUDENTIAL REQUIREMENTSLEGAL PROTECTIONRISKNONBANK FINANCIAL INSTITUTIONSFINANCIAL MARKETSTANGIBLE ASSETSBANKINGRISK MEASUREMENTDECENTRALIZATIONRISK MANAGEMENTFINANCIAL RISKCORRESPONDENT BANKSENTREPRENEURSHIPUNIVERSAL BANKINGGOVERNMENTSACCOUNTING RECORDSPROPERTY OWNERSHIPCAPITAL STANDARDSECONOMIC CONDITIONSNONPERFORMING LOANSAUDITINGCAPITAL ADEQUACY RATIOSSPECIALIZED BANKSReportInternational Monetary Fund and World Bank10.1596/22911