Moldova to Heighten Transparency of Banking System
OREANDA-NEWS. February 15, 2012. This obligation is comprised in the additional Memorandum of economic and financial policy of the government and the National Bank of Moldova coordinated with IMF and published at the last weekend. The recent legal disputes and questionable transfers of equities of several banks displayed significant gaps in the law system.
The government of Moldova is ready to provide more transparency of the banking system. Some changes have already been introduced in the law to lower risks of such incidents in future. However, the main shortcoming is the absence of transparency in matters concerning banks proprietorship. This provokes illegal actions and threatens financial stability as well as becomes the matter of a great concern of the reputation of the banking system of Moldova as a whole.
According to the government, the National Bank will establish a working group from representatives of various institutions to work out the amendments to the law under auspice of the World Bank and IMF to guarantee complete transparency and disclose the information about final controllers of the banks in line with Basel Core Principles and Financial Action Task Force standards. The amendments are planned to be worked out till March, 2012, and the parliament will pass them till the end of July.