Came into force the Law on the National Committee for Financial Stability
The document developed by the National Bank and the Ministry of Finance and adopted by the Parliament, promulgated by the president and published in the 16.11,2018 issue of Monitorul oficial. As InfoMarket agency reported earlier, the reorganization of the National Committee on Financial Stability was provided for by the Law on the Rehabilitation of Banks and the Banking Resolution and also stipulated by the National Action Plan for the implementation of the Moldova-EU Association Agreement for 2017-2019. According to the law, the National Committee on Financial Stability will act as a structure of interdepartmental cooperation, without the status of a legal entity, which is a macroprudential national designated institution responsible for coordinating the implementation of macroprudential policies and activities to prevent and resolve systemic financial crisis situations. The NCFS will be responsible for coordinating and implementing macro-prudential policies, preventing, reducing or eliminating risks threatening financial stability at the system level, as well as managing situations of systemic financial crisis. To achieve its goals, the committee will coordinate the management of systemic financial crises; submit proposals to the government and other competent authorities on policies and measures for the protection of deposits, capitalization and recapitalization of banks; to offer immediate measures in case of the onset of systemic financial crises; to propose actions and measures aimed at restoring confidence in the security of the financial system; periodically make official statements to prevent misinformation; approve a communication policy and action plan in crisis situations, as well as a national emergency plan; determine the need for the state to participate in the sale of shares of systemically important banks; monitor the implementation of recommendations made by the committee. The committee will also ensure the transparency of the decision-making process and increase the degree of responsibility of officials for risk management and their minimization at the system level. The law describes in detail the tasks, rights, powers, responsibilities of the NCFS, the frequency of its meetings and other organizational aspects, the rules for applying the recommendations of the NCFS, the principles of confidentiality, the responsibility of the NCFS. There are also requirements for the publication of decisions of the committee – they will be posted on the website of the National Bank within 2 weeks after the date of the meeting. Committee members will sign a declaration of confidentiality of information used in the decision-making process. It is stipulated that the first meeting of the Expanded Committee is held no later than 90 days from the date of entry into force of this law.