Moldova. What does Europe think?
BSSB.BE jurnal.md 08.02.2016
The Rapporteur of the European Parliament for the Republic of Moldova, the Lithuanian MEP Petras Auštrevičius effectuates a visit in the Republic of Moldova, in the period February, 8-11, 2016.
The program of the visit includes meetings with the President of the Republic of Moldova Nicolae Timofti, the Prime Minister Pavel Filip, the Deputy Chairman Liliana Palihovici and with the Deputy Prime Minister Andrei Galbur, the Minister of Foreign Affairs and European Integration.
The Rapporteur of the European Parliament will also discuss with some deputies.
The MEP Petras Auštrevičius is also the coordinator of the Annual program of cooperation between the European Parliament and the Parliament of the Republic of Moldova for 2016. The program of cooperation provides assistance to the RM Parliament in the approximation and harmonization of national legislation with the acquis communautaire, as well as the consolidation of capacities of the parliamentary commissions.
The banking crisis that has perturbed the Republic of Moldova economy can be attenuated through a plan that includes seven urgent measures, implemented the following two years, at the National Bank of Moldova, as well as at the level of commercial banks, claim the economists from the analytical center Expert-Grup.
This plan will attenuate the consequences of the crisis and will prevent similar crises in future, say the experts. “An independent central bank, well-equipped with modern instruments of banking monitoring and regulation, but also commercial banks managed and owned by professional and upright persons, with exemplary corporate governance and sufficiently capitalized to be able to absorb on its own account any fail of management”, are the fundamental principles that are at the basis of the strategy of consolidation of the banking sector.
Here is the set of seven measures proposed by the Expert-Grup.
- Strengthening of NBM independence. The actions in this sense must concern the elimination of leverages through which certain circles on political or private interests can pressure on the central bank. Besides the increase of efficiency of the activity of regulation, it provides also a better accountability of the central bank.
- Fortification of banking monitoring and supervision. The measures refer to the diminishing of the human factor in the process of monitoring and regulation through the implementation of ICT solutions, the increase of the NBM capacity in the identification and counteraction of the concerted activities, toughening of the criminal sanctions for the abuse on market and other offenses of the commercial banks, but also the increase of efficiency of communication and coordination among the responsible institutions directly and indirectly by the financial stability.
- Increase of transparency of shareholders from the banking system. It is necessary the institution of a clear mechanism of evaluation of shareholders’ “quality”, not to admit the owning of banking shareholders by persons with dubious profile of integrity. In this sense, the actions must concern the implementation and the institutionalization of some minimal standards of integrity and transparency, as well as the facilitation of the exchange of information with the states-residencies of the final shareholders of banks.
- The improvement of the corporate governance in banks. Are necessary motivational measures, among which the elaboration and the promotion of a general Code of Corporate Governance, the elaboration and the annual publishing of reports on the transparency of risk management and the promotion of some ethical and professional standards for the officials from banks, as well as coercive measures, such as the toughening of the sanctions for the improper governance.
Accountability of the banking managers. The authors of the study propose the development of the principle of double verification, but also the implementation of the mechanism bail-in, in which the shareholders are obliged to cover from their own sources the losses and any other consequences of bad management. In the list actions also enter the increase of independence of the members of the Boards of Directors who verify the activity of the banking managers and the toughening of the sanctions for the non-corresponding administration of banks.
“In essence, it is necessary to develop a system in which the bankers’ fails to be paid by the bankers, and not by citizens”, declared in context the Director Executive of the Expert-Grup, Adrian Lupuşor.
The “unoffshorization” of the banking system. The interdiction of any other interactions among banks and the companies from the regions that do not respect the standards of transparency, as well as the full harmonization of the domestic legislation with the EU provisions in the area of money laundry.
The increase of the banks capacity to absorb losses. It is necessary the review of the prudential indicators according to the provisions Basel III, the delimitation of some even more stringent requirements for the systemic banks in report with the small banks and the majoring of the bank deposit guarantee ceiling.
The economists of the Expert-Grup also announced today that they engage themselves in the monitoring of the authorities actions oriented to the banking sector stabilization and the prevention of similar crises in future.
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