European Union supports the modernisation of the financial sector of the Republic of Moldova

On 18 January 2022, the kick-off event for the Twinning project dedicated to the financial sector in the Republic of Moldova “Strengthening supervision, corporate governance and risk management in the financial sector” took place.

The National Bank of Moldova (NBM) and the National Commission for Financial Markets (NCFM) will benefit in the next two years from support provided by the European Union to further develop and reform the financial sector in the Republic of Moldova.  

The EU partner institutions, which will provide support to NBM and NCFM within the Twinning project, are the National Bank of Romania, the Central Bank of the Netherlands and the Central Bank of Lithuania, in collaboration with the Romanian Financial Supervisory Authority and the Romanian National Authority for Consumer Protection.

The Twinning project aims, among other things, to strengthen and diversify macroprudential oversight instruments, improve the regulation and supervision of payment services and financial market infrastructures, as well as to ensure the necessary conditions for Moldova’s accession to the Single Euro Payments Area (SEPA). 

“The current Twinning project has a wide scope, not only for the banking sector, but also for the financial market in the Republic of Moldova. It aims to benefit both the National Bank of Moldova and the National Commission for Financial Markets of the Republic of Moldova, by strengthening institutional capacities and governance, as well as developing the regulatory framework, supervising the operational framework for enhanced functionality. On this occasion, I would like to express my full gratitude to our partners – De Nederlandsche Bank, Lietuvos Bankas, as well as the Romanian Financial Supervisory Authority and the Romanian National Authority for Consumer Protection“, underlined the Governor of the National Bank of Romania, Mugur Isărescu.

In his speech, the Governor of the Central Bank of the Netherlands, Klaas Knot, stated „The intermediate aim of the project is to strengthen the capacity of the National Bank of Moldova and the National Commission for Financial Markets. And to align their functions and operations with EU regulations and international standards. But of course, the ultimate objective goes beyond this. That is to improve stability, functioning, and trust in the financial system. So that the people of Moldova can build their future, knowing that their money is safe, that they can pay without trouble, and that they can get credit to buy a house or to start up a business.” 

At the same time, the Governor of the Central Bank of Lithuania, Gediminas Šimkus, noted that “Together with experts from the central banks of Romania and the Netherlands, we are taking the lead in helping Moldova’s central bank and supervisory authority to bring the financial sector structure and supervision closer to the EU standards and thus accelerate the path of Moldova’s integration into the EU as well as achieve sustainable long-term economic growth.”

The project assistance will be also provided to strengthen the capacity of insurance and non-bank lending organisations by aligning the national regulatory framework with that applicable in the European Union.

According to the project team’s estimates, the successful implementation of the project will provide opportunities for local and foreign investors to participate in the sustainable development of the local financial market, with a high level of security, with quality financial products and services, to meet better the current needs of various categories of consumers and customers.

The event can be watched at the following link: https://youtu.be/-7s2-2hf4rI