Moldova Financial Sector Assessment Program : Oversight and Supervision of Financial Market Infrastructures and Risk Assessment of Central Securities Depositories
The approach taken by authorities in the oversight and supervision of FMIs is important in promoting and maintaining financial stability in Moldova. While well-functioning FMIs can greatly improve the efficiency, transparency, and safety of financi...
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| Format: | Report |
| Language: | English en_US |
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Washington, DC
2015
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| Online Access: | http://documents.worldbank.org/curated/en/2015/10/25149779/moldova-financial-sector-assessment-program-technical-note-oversight-supervision-financial-market-infrastructures-fmis-risk-assessment-central-securities-depositories http://hdl.handle.net/10986/22907 |
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okr-10986-22907 |
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| recordtype |
oai_dc |
| repository_type |
Digital Repository |
| institution_category |
Foreign Institution |
| institution |
Digital Repositories |
| building |
World Bank Open Knowledge Repository |
| collection |
World Bank |
| language |
English en_US |
| topic |
MONETARY POLICY WITHDRAWAL HOLDING DERIVATIVE SECURITIES CHECKS DEPOSITS FINANCIAL MARKET PARTICIPANTS PAYMENT SERVICE PAYMENT OBLIGATIONS INTEREST LIQUIDITY RISKS COMPENSATION FUND GROSS SETTLEMENT SYSTEM REVENUES PORTFOLIO LIQUIDITY RISK MARKET REGULATORS CAPITAL ADEQUACY PAR VALUE CREDIT TRANSACTIONS INFORMATION SYSTEMS CENTRAL SECURITIES DEPOSITORY INSTRUMENTS MARKET INFRASTRUCTURES FINANCIAL COLLATERAL MARKET PARTICIPANTS CONVERSION SECURITIES ISSUANCE LEGAL PROVISIONS FINANCIAL INSTITUTION SETTLEMENT SYSTEMS SETTLEMENT DATE SETTLEMENT OF TRANSACTIONS SECURITY HOLDERS PRIMARY DEALERS CREDIT RISKS MONETARY FUND MARKET TURNOVER FINANCIAL INSTITUTIONS CAPITAL MARKET COLLATERAL ARRANGEMENTS DEBT MARKETS CENTRAL SECURITIES DEPOSITORIES PUBLIC OFFERING SETTLEMENT FRAUD RISKS LEGAL FRAMEWORK BROKERS CIVIL CODE TRANSACTIONS INTERNATIONAL STANDARDS BOOK ENTRY SYSTEM GOOD TRANSPARENCY LEGAL OBLIGATION DERIVATIVE MARKET CONDITIONS TURNOVER FUTURE MARKET PRICES CONFLICTS OF INTEREST ISSUANCE SHARES MINORITY SHAREHOLDERS RISK OF DEFAULT SECURITIES TREASURY SOLVENCY CREDIT RISK INSURANCE HOLDINGS SHAREHOLDERS GOVERNMENT BONDS OPEN MARKET REGISTRATION SYSTEM CENTRAL DEPOSITORY COMMERCIAL BANKS DEPOSITORY SYSTEM FINANCIAL ASSETS JOINT STOCK COMPANIES SHAREHOLDER FRAUD RISK MARKET PRACTICES MATURITIES FINANCIAL SYSTEMS PAYMENT SYSTEMS LIQUID ASSETS LIQUIDITY PROBLEMS CASH FLOW BANKING MARKET PLEDGES CAPITAL MARKETS DEPOSIT REGULATORY FRAMEWORK STOCK INFORMATION TECHNOLOGY ASSET PRICES CASH SETTLEMENT EXCHANGE PROPERTY RIGHTS SECURITIES REGISTRATION PAYMENT SYSTEM LIQUIDITY NOTARY CORPORATE SECURITIES SECURITIES TRANSACTIONS BONDS SETTLEMENT OF FUNDS FRAMEWORK FOR SECURITIES MARKET INFRASTRUCTURE CENTRAL BANKS PLEDGE PENSION CENTRAL BANK MATURITY MARKET STABILITY NATIONAL SECURITIES MARKET REGULATOR SECURITIES MARKET PRIMARY MARKET MARKET PRACTICE SETTLEMENT RISK CONTRACTS GUARANTEE FUND TRADING FEE INCOME MORAL SUASION CAPITAL REQUIREMENTS TRANSFER OF SECURITIES SETTLEMENT SYSTEM RESERVES GROSS DOMESTIC PRODUCT FINANCIAL SYSTEM COMMON STOCK FINANCE PAYMENT OF INTERESTS BROKER CUSTODY GOVERNMENT SECURITIES SETTLEMENT PERIOD EQUITY TRANSACTION INVESTORS SECURITIES MARKETS FRAUD FINANCIAL STABILITY PAYMENT OBLIGATION BOOK-ENTRY MINIMUM CAPITAL REQUIREMENTS FINANCIAL INSTRUMENTS FINANCIAL INSTRUMENT CONTRACT AMORTIZATION FINANCIAL ASSET PROPERTY LEGAL OWNERSHIP BALANCE SHEET TRANSACTION COSTS DEFAULT MARKET MARKET LAW FOREIGN EXCHANGE RISK PROFILE CAPITAL MARKET LAW INTERESTS INVESTOR TRADING SYSTEM PRIMARY DEALER SECURITY FINANCIAL MARKET LOSS STATEMENT STOCKS INVESTMENT NATIONAL BANK STOCK EXCHANGE LEGAL PROTECTION SHARE INTERNAL AUDIT COLLATERAL PAYMENT SERVICES FINANCIAL MARKETS BID MONEY MARKET LEGAL REFORMS RISK CONTROLS PROFIT INVESTMENTS RISK MANAGEMENT CHECK PENSION FUND INSTRUMENT EXCHANGE RATE CAPITAL MARKET INFRASTRUCTURE PROFITS SECONDARY MARKET CUSTODIAN BANKS JOINT STOCK COMPANY GUARANTEE BOOK ENTRY SETTLEMENT RISKS SETTLEMENT SERVICES |
| spellingShingle |
MONETARY POLICY WITHDRAWAL HOLDING DERIVATIVE SECURITIES CHECKS DEPOSITS FINANCIAL MARKET PARTICIPANTS PAYMENT SERVICE PAYMENT OBLIGATIONS INTEREST LIQUIDITY RISKS COMPENSATION FUND GROSS SETTLEMENT SYSTEM REVENUES PORTFOLIO LIQUIDITY RISK MARKET REGULATORS CAPITAL ADEQUACY PAR VALUE CREDIT TRANSACTIONS INFORMATION SYSTEMS CENTRAL SECURITIES DEPOSITORY INSTRUMENTS MARKET INFRASTRUCTURES FINANCIAL COLLATERAL MARKET PARTICIPANTS CONVERSION SECURITIES ISSUANCE LEGAL PROVISIONS FINANCIAL INSTITUTION SETTLEMENT SYSTEMS SETTLEMENT DATE SETTLEMENT OF TRANSACTIONS SECURITY HOLDERS PRIMARY DEALERS CREDIT RISKS MONETARY FUND MARKET TURNOVER FINANCIAL INSTITUTIONS CAPITAL MARKET COLLATERAL ARRANGEMENTS DEBT MARKETS CENTRAL SECURITIES DEPOSITORIES PUBLIC OFFERING SETTLEMENT FRAUD RISKS LEGAL FRAMEWORK BROKERS CIVIL CODE TRANSACTIONS INTERNATIONAL STANDARDS BOOK ENTRY SYSTEM GOOD TRANSPARENCY LEGAL OBLIGATION DERIVATIVE MARKET CONDITIONS TURNOVER FUTURE MARKET PRICES CONFLICTS OF INTEREST ISSUANCE SHARES MINORITY SHAREHOLDERS RISK OF DEFAULT SECURITIES TREASURY SOLVENCY CREDIT RISK INSURANCE HOLDINGS SHAREHOLDERS GOVERNMENT BONDS OPEN MARKET REGISTRATION SYSTEM CENTRAL DEPOSITORY COMMERCIAL BANKS DEPOSITORY SYSTEM FINANCIAL ASSETS JOINT STOCK COMPANIES SHAREHOLDER FRAUD RISK MARKET PRACTICES MATURITIES FINANCIAL SYSTEMS PAYMENT SYSTEMS LIQUID ASSETS LIQUIDITY PROBLEMS CASH FLOW BANKING MARKET PLEDGES CAPITAL MARKETS DEPOSIT REGULATORY FRAMEWORK STOCK INFORMATION TECHNOLOGY ASSET PRICES CASH SETTLEMENT EXCHANGE PROPERTY RIGHTS SECURITIES REGISTRATION PAYMENT SYSTEM LIQUIDITY NOTARY CORPORATE SECURITIES SECURITIES TRANSACTIONS BONDS SETTLEMENT OF FUNDS FRAMEWORK FOR SECURITIES MARKET INFRASTRUCTURE CENTRAL BANKS PLEDGE PENSION CENTRAL BANK MATURITY MARKET STABILITY NATIONAL SECURITIES MARKET REGULATOR SECURITIES MARKET PRIMARY MARKET MARKET PRACTICE SETTLEMENT RISK CONTRACTS GUARANTEE FUND TRADING FEE INCOME MORAL SUASION CAPITAL REQUIREMENTS TRANSFER OF SECURITIES SETTLEMENT SYSTEM RESERVES GROSS DOMESTIC PRODUCT FINANCIAL SYSTEM COMMON STOCK FINANCE PAYMENT OF INTERESTS BROKER CUSTODY GOVERNMENT SECURITIES SETTLEMENT PERIOD EQUITY TRANSACTION INVESTORS SECURITIES MARKETS FRAUD FINANCIAL STABILITY PAYMENT OBLIGATION BOOK-ENTRY MINIMUM CAPITAL REQUIREMENTS FINANCIAL INSTRUMENTS FINANCIAL INSTRUMENT CONTRACT AMORTIZATION FINANCIAL ASSET PROPERTY LEGAL OWNERSHIP BALANCE SHEET TRANSACTION COSTS DEFAULT MARKET MARKET LAW FOREIGN EXCHANGE RISK PROFILE CAPITAL MARKET LAW INTERESTS INVESTOR TRADING SYSTEM PRIMARY DEALER SECURITY FINANCIAL MARKET LOSS STATEMENT STOCKS INVESTMENT NATIONAL BANK STOCK EXCHANGE LEGAL PROTECTION SHARE INTERNAL AUDIT COLLATERAL PAYMENT SERVICES FINANCIAL MARKETS BID MONEY MARKET LEGAL REFORMS RISK CONTROLS PROFIT INVESTMENTS RISK MANAGEMENT CHECK PENSION FUND INSTRUMENT EXCHANGE RATE CAPITAL MARKET INFRASTRUCTURE PROFITS SECONDARY MARKET CUSTODIAN BANKS JOINT STOCK COMPANY GUARANTEE BOOK ENTRY SETTLEMENT RISKS SETTLEMENT SERVICES International Monetary Fund Moldova Financial Sector Assessment Program : Oversight and Supervision of Financial Market Infrastructures and Risk Assessment of Central Securities Depositories |
| geographic_facet |
Europe and Central Asia Moldova |
| description |
The approach taken by authorities in the
oversight and supervision of FMIs is important in promoting
and maintaining financial stability in Moldova. While
well-functioning FMIs can greatly improve the efficiency,
transparency, and safety of financial systems, they can also
concentrate systemic risk, which requires effective
oversight and supervision to achieve public policy
objectives. In the context of Moldova, the authorities are
confronted with a national decision to create a single CSD
that has good governance, robust risk management practices,
and financial soundness. Vulnerabilities in FMIs could
potentially undermine the implementation of monetary policy,
or generate systemic disruptions in the financial markets,
and more widely across the economy. A problem may be
initiated by the inability of a participant to settle its
obligations, or by operational failures of the system as a
whole. The resulting default may be passed on to other
participants, and get transmitted across financial systems
and markets, threatening their stability. This note reviews
the oversight and supervisory framework for FMIs in Moldova.
In this note, FMIs cover payment systems, central securities
depositories, and securities settlement systems. Payment
systems were assessed in the 2008 Republic of Moldova FSAP
Update and are not covered in this note. Securities
registrars, which play a key role in the capital markets,
are not FMIs and are assessed under principle 11 on CSDs of
the PFMIs. The analysis was based on the authorities’
answers to the IMF’s questionnaire, IMF and World Bank
technical assistance reports, and background documentation.
The mission met with representatives from the NBM, NCFM,
MSE, NSD, and independent registrars. This note was prepared
based on the information available in February 2014. The
note includes (i) an overview of the FMIs and description of
past and ongoing reforms, and (ii) an assessment of the main
issues at stake. |
| format |
Report |
| author |
International Monetary Fund |
| author_facet |
International Monetary Fund |
| author_sort |
International Monetary Fund |
| title |
Moldova Financial Sector Assessment Program : Oversight and Supervision of Financial Market Infrastructures and Risk Assessment of Central Securities Depositories |
| title_short |
Moldova Financial Sector Assessment Program : Oversight and Supervision of Financial Market Infrastructures and Risk Assessment of Central Securities Depositories |
| title_full |
Moldova Financial Sector Assessment Program : Oversight and Supervision of Financial Market Infrastructures and Risk Assessment of Central Securities Depositories |
| title_fullStr |
Moldova Financial Sector Assessment Program : Oversight and Supervision of Financial Market Infrastructures and Risk Assessment of Central Securities Depositories |
| title_full_unstemmed |
Moldova Financial Sector Assessment Program : Oversight and Supervision of Financial Market Infrastructures and Risk Assessment of Central Securities Depositories |
| title_sort |
moldova financial sector assessment program : oversight and supervision of financial market infrastructures and risk assessment of central securities depositories |
| publisher |
Washington, DC |
| publishDate |
2015 |
| url |
http://documents.worldbank.org/curated/en/2015/10/25149779/moldova-financial-sector-assessment-program-technical-note-oversight-supervision-financial-market-infrastructures-fmis-risk-assessment-central-securities-depositories http://hdl.handle.net/10986/22907 |
| _version_ |
1764452387175530496 |
| spelling |
okr-10986-229072021-04-23T14:04:11Z Moldova Financial Sector Assessment Program : Oversight and Supervision of Financial Market Infrastructures and Risk Assessment of Central Securities Depositories International Monetary Fund MONETARY POLICY WITHDRAWAL HOLDING DERIVATIVE SECURITIES CHECKS DEPOSITS FINANCIAL MARKET PARTICIPANTS PAYMENT SERVICE PAYMENT OBLIGATIONS INTEREST LIQUIDITY RISKS COMPENSATION FUND GROSS SETTLEMENT SYSTEM REVENUES PORTFOLIO LIQUIDITY RISK MARKET REGULATORS CAPITAL ADEQUACY PAR VALUE CREDIT TRANSACTIONS INFORMATION SYSTEMS CENTRAL SECURITIES DEPOSITORY INSTRUMENTS MARKET INFRASTRUCTURES FINANCIAL COLLATERAL MARKET PARTICIPANTS CONVERSION SECURITIES ISSUANCE LEGAL PROVISIONS FINANCIAL INSTITUTION SETTLEMENT SYSTEMS SETTLEMENT DATE SETTLEMENT OF TRANSACTIONS SECURITY HOLDERS PRIMARY DEALERS CREDIT RISKS MONETARY FUND MARKET TURNOVER FINANCIAL INSTITUTIONS CAPITAL MARKET COLLATERAL ARRANGEMENTS DEBT MARKETS CENTRAL SECURITIES DEPOSITORIES PUBLIC OFFERING SETTLEMENT FRAUD RISKS LEGAL FRAMEWORK BROKERS CIVIL CODE TRANSACTIONS INTERNATIONAL STANDARDS BOOK ENTRY SYSTEM GOOD TRANSPARENCY LEGAL OBLIGATION DERIVATIVE MARKET CONDITIONS TURNOVER FUTURE MARKET PRICES CONFLICTS OF INTEREST ISSUANCE SHARES MINORITY SHAREHOLDERS RISK OF DEFAULT SECURITIES TREASURY SOLVENCY CREDIT RISK INSURANCE HOLDINGS SHAREHOLDERS GOVERNMENT BONDS OPEN MARKET REGISTRATION SYSTEM CENTRAL DEPOSITORY COMMERCIAL BANKS DEPOSITORY SYSTEM FINANCIAL ASSETS JOINT STOCK COMPANIES SHAREHOLDER FRAUD RISK MARKET PRACTICES MATURITIES FINANCIAL SYSTEMS PAYMENT SYSTEMS LIQUID ASSETS LIQUIDITY PROBLEMS CASH FLOW BANKING MARKET PLEDGES CAPITAL MARKETS DEPOSIT REGULATORY FRAMEWORK STOCK INFORMATION TECHNOLOGY ASSET PRICES CASH SETTLEMENT EXCHANGE PROPERTY RIGHTS SECURITIES REGISTRATION PAYMENT SYSTEM LIQUIDITY NOTARY CORPORATE SECURITIES SECURITIES TRANSACTIONS BONDS SETTLEMENT OF FUNDS FRAMEWORK FOR SECURITIES MARKET INFRASTRUCTURE CENTRAL BANKS PLEDGE PENSION CENTRAL BANK MATURITY MARKET STABILITY NATIONAL SECURITIES MARKET REGULATOR SECURITIES MARKET PRIMARY MARKET MARKET PRACTICE SETTLEMENT RISK CONTRACTS GUARANTEE FUND TRADING FEE INCOME MORAL SUASION CAPITAL REQUIREMENTS TRANSFER OF SECURITIES SETTLEMENT SYSTEM RESERVES GROSS DOMESTIC PRODUCT FINANCIAL SYSTEM COMMON STOCK FINANCE PAYMENT OF INTERESTS BROKER CUSTODY GOVERNMENT SECURITIES SETTLEMENT PERIOD EQUITY TRANSACTION INVESTORS SECURITIES MARKETS FRAUD FINANCIAL STABILITY PAYMENT OBLIGATION BOOK-ENTRY MINIMUM CAPITAL REQUIREMENTS FINANCIAL INSTRUMENTS FINANCIAL INSTRUMENT CONTRACT AMORTIZATION FINANCIAL ASSET PROPERTY LEGAL OWNERSHIP BALANCE SHEET TRANSACTION COSTS DEFAULT MARKET MARKET LAW FOREIGN EXCHANGE RISK PROFILE CAPITAL MARKET LAW INTERESTS INVESTOR TRADING SYSTEM PRIMARY DEALER SECURITY FINANCIAL MARKET LOSS STATEMENT STOCKS INVESTMENT NATIONAL BANK STOCK EXCHANGE LEGAL PROTECTION SHARE INTERNAL AUDIT COLLATERAL PAYMENT SERVICES FINANCIAL MARKETS BID MONEY MARKET LEGAL REFORMS RISK CONTROLS PROFIT INVESTMENTS RISK MANAGEMENT CHECK PENSION FUND INSTRUMENT EXCHANGE RATE CAPITAL MARKET INFRASTRUCTURE PROFITS SECONDARY MARKET CUSTODIAN BANKS JOINT STOCK COMPANY GUARANTEE BOOK ENTRY SETTLEMENT RISKS SETTLEMENT SERVICES The approach taken by authorities in the oversight and supervision of FMIs is important in promoting and maintaining financial stability in Moldova. While well-functioning FMIs can greatly improve the efficiency, transparency, and safety of financial systems, they can also concentrate systemic risk, which requires effective oversight and supervision to achieve public policy objectives. In the context of Moldova, the authorities are confronted with a national decision to create a single CSD that has good governance, robust risk management practices, and financial soundness. Vulnerabilities in FMIs could potentially undermine the implementation of monetary policy, or generate systemic disruptions in the financial markets, and more widely across the economy. A problem may be initiated by the inability of a participant to settle its obligations, or by operational failures of the system as a whole. The resulting default may be passed on to other participants, and get transmitted across financial systems and markets, threatening their stability. This note reviews the oversight and supervisory framework for FMIs in Moldova. In this note, FMIs cover payment systems, central securities depositories, and securities settlement systems. Payment systems were assessed in the 2008 Republic of Moldova FSAP Update and are not covered in this note. Securities registrars, which play a key role in the capital markets, are not FMIs and are assessed under principle 11 on CSDs of the PFMIs. The analysis was based on the authorities’ answers to the IMF’s questionnaire, IMF and World Bank technical assistance reports, and background documentation. The mission met with representatives from the NBM, NCFM, MSE, NSD, and independent registrars. This note was prepared based on the information available in February 2014. The note includes (i) an overview of the FMIs and description of past and ongoing reforms, and (ii) an assessment of the main issues at stake. 2015-11-06T15:59:59Z 2015-11-06T15:59:59Z 2014-06 Report http://documents.worldbank.org/curated/en/2015/10/25149779/moldova-financial-sector-assessment-program-technical-note-oversight-supervision-financial-market-infrastructures-fmis-risk-assessment-central-securities-depositories http://hdl.handle.net/10986/22907 English en_US CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo/ World Bank Washington, DC Economic & Sector Work :: Financial Sector Assessment Program Economic & Sector Work Europe and Central Asia Moldova |