The European Union provides assistance for the National Bank of Moldova capacity building

A new Twinning project was launched yesterday with the European Union support. The project “Strengthening the NBM's capacity in the field of banking regulation and supervision in the context of EU requirements” will be implemented by the National Bank of Moldova (NBM) together with the consortium composed of the Romanian National Bank (BNR) and De Nederlandsche Bank (DNB). The project official launching event was held on June 30, with the participation of the EU Ambassador to the Republic of Moldova, Pirkka Tapiola.

The project aims at providing technical assistance for the strengthening of the NBM prudential supervision framework within the harmonization with the EU norms and standard processes, as well as at increasing the institutional and administrative capacity of the NBM in view of ensuring the proper functioning of the banking system. The project will receive a finance support of approximately 1.2 million EUR from the European Union, through the ENPI framework for the Republic of Moldova, and will run for a period of two years.

The objective of the project, in particular, to improve the banks’ prudential regulations oriented towards ensuring a sound and competitive banking sector. Thus, pursuant to the commitments undertaken by the Republic of Moldova through the Association Agreement with the European Union, the Moldovan legislation is to be harmonized with the EU provisions and international standards related to Basel III within a period of 3 years from its signing.

Their implementation will have a direct impact on the banking sector in terms of risk reduction. Thus, the Twinning project will assist the National Bank of Moldova to exercise the banking supervision function within a modern and efficient institutional context.

Additional information:

The areas covered by this project are directed towards:
(I) Legal framework, institutional capacity and CRD IV package additional requirements;
(II) Supervisory framework of the three risk categories covered by Pillar 1;
(III) Implementation of the ICAAP risk self-assessment process by the banks and evaluation of the banks’ ICAAP plans by the NBM;
(IV) Publication of the information allowing the risk management assessment process and each bank capital adequacy.

Through the EU Association Agreement signed on 27 June 2014, the Republic of Moldova has committed to harmonize its legislation with the EU acquis and the international standards related to Basel III within three years from its signing. The harmonization relates to Directive 2013/36 / EU of the European Parliament and of the EU Council of June 26, 2013 and the Regulation No. 575/2013 of the Parliament and of the EU Council, which refers to the activity performed by the banks and the investment firms, as well as to the associated prudential requirements (CRD IV package).

Twinning is an instrument for cooperation between the Public Administrations of EU Member States (MS) and the beneficiary countries. The actions initiated in this sense relate to the modernization of the institution supported through training, reorganization and harmonization of the legal framework with the EU acquis.

Source: www.eeas.europa.eu
Photo source: www.bnm.md