Despite Some Progress in Reforming the Banking Sector, the Major Vulnerabilities That Caused the Banking Crisis Persist

The main gains were in strengthening the independence of the National Bank of Moldova, making bank managers accountable, banks' loss-absorption capacity and corporate governance. Still pressing are exposure to off-shore companies, the shareholding of some banks and supervisory capacity. Eugen Ghilețchi noted preparation for Basel III, but also gaps, including weak rules on central bank loans guaranteed by the Government, dismissal of the National Bank's management by a simple majority of MPs, the delayed reform of the National Committee for Financial Stability, multiple board memberships and weak deposit guarantees.

In the third edition of the shareholder transparency rating, only Moldindconbank moved, up one place compared with July 2016, after National Bank measures against some shareholders. Dumitru Pintea recommended publishing the ultimate beneficial owners. Sergiu Gaibu urged a multilateral risk assessment of the draft anti-money laundering law and a review of the governance of the responsible Service.