Moldova Financial Sector Assessment
Although Moldova has made some important advances since the 2008 FSAP update, risks to banking sector stability have become severe. There is an urgent need, therefore, to improve transparency and governance in the banking system. Although the banki...
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| Format: | Report |
| Language: | English en_US |
| Published: |
World Bank, Washington, DC
2015
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| Online Access: | http://documents.worldbank.org/curated/en/2015/10/24045167/moldova-financial-sector-assessment http://hdl.handle.net/10986/22912 |
| Summary: | Although Moldova has made some important
advances since the 2008 FSAP update, risks to banking sector
stability have become severe. There is an urgent need,
therefore, to improve transparency and governance in the
banking system. Although the banking sector appears to be
well capitalized and liquid, important pockets of weakness
remain and vulnerabilities may be masked by fraud or
misreporting. The two securities settlement systems are in
need of updating, though plans to take this reform forward
are not finalized. Weaknesses in the insolvency and creditor
or debtor regime create uncertainty and may deter some
stakeholders from engaging in financial transactions.
Especially in light of the weaknesses described above and
recent geopolitical uncertainties, urgent action is needed
to address these and mitigate the risks to which the
financial system appears to be exposed. |
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