Republic of Moldova: Central Bank Transparency Code Review

REPUBLIC OFMOLDOVA CENTRAL BANK TRANSPARENCY CODE REVIEW This paperonthe Republic ofMoldovawas prepared by a staff team of the InternationalMonetary Fund.It is based on theinformation available at the timeof the mission anditwas completed onMarch26, 2025. Copies of this report are available to the public from International Monetary Fund•Publication ServicesPO Box 92780•Washington, D.C. 20090Telephone: (202) 623-7430•Fax: (202) 623-7201E-mail:publications@imf.orgWeb:http://www.imf.orgPrice: $18.00per printed copy International Monetary FundWashington, D.C. REPUBLIC OF MOLDOVA CENTRAL BANK TRANSPARENCY CODE REVIEW DETAILED REVIEW REPORT This report was prepared based on the work of anIMFmission toChișinăuin November 2024. The IMF team forthe Central Bank Transparency Code (CBT) Review missionwas led by Istvan Mak (MCM) and comprisedArkadiuszMajewski(FIN) Deputy Mission Chief;Antonio Jorge Silvaand Thiago Christiano Silva(MCM);Maksym Markevych(LEG); Kei Moriya (ITD);and Jan-Barend Jansen and EliasKazarian (IMF External Experts); and overseen by theMonetary and Capital Markets Department, IMF. Prepared By Monetary and CapitalMarkets Department The production assistance was provided by JulieVaselopulos. The team extends its warm appreciation to the ExecutiveBoard,Supervisory Board,senior management, and staff ofthe National Bank of Moldova, who provided excellentcooperation, and to outside stakeholders for their valuableviews and insights. CONTENTS Glossary___________________________________________________________________________________________3EXECUTIVE SUMMARY __________________________________________________________________________5KEY RECOMMENDATIONS____________________________________________________________________11SCOPE AND OBJECTIVE _______________________________________________________________________ 12APPROACH AND METHODOLOGY____________________________________________________________12BACKGROUND_________________________________________________________________________________13 A.Pillar I. Transparency in Governance___________________________________________________________14B.Pillars II, III, and IV. Transparency in Policies, Operations, and Outcome_______________________18C. Pillar V. Transparency in Official Relations _____________________________________________________24 AUTHORITIES’ RESPONSE TO DETAILED REVIEW REPORT __________________________________26 BOX 1. Law on Transparency in the Decision-Making Process_________________________________________15 TABLES 1. Central Bank Transparency Overview for National Bank of Moldova ___________________________ 72. National Bank of Moldova Response to Key Recommendations from the CBT Review ________28 ANNEXES I. Central Bank Transparency Review—Detailed Review Report for the National Bank ofMoldova _________________________________________________________________________________________32II. List of National Bank of MoldovaUnits and External Stakeholders__________________________ 112III.Quantitative Analysis of the National Bank of Moldova’s Communication__________________ 114 Glossary ACAudit CommitteeAML/CFTAnti-Money Laundering/Countering the Financing of TerrorismBCBSBasel Committee on Banking SupervisionBISBank for International SettlementsCISCommonwealth of Independent StatesCCyBCountercyclical Capital BufferCOSOCommittee of Sponsoring OrganizationsCPMICommittee on Payments and Market InfrastructuresCSDCentral Securities DepositoryDGFBSDeposit Guarantee Fund in the Banking SystemDSTIDebt-Service-to-Income RatioEBRDEuropean Bank forReconstruction and DevelopmentECBEuropean Central BankELAEmergency Liquidity AssistanceERMEnterprise Risk ManagementFATFFinancial Action Task ForceFSRFinancial Stability ReportFXForeign ExchangeGDPGross Domestic ProductIADIInternational Association of Deposit InsurersIAISInternational Association of Insurance SupervisorsIASInternational Auditing StandardsIBRDInternational Bank for Reconstruction and DevelopmentIFRSInternational Financial ReportingStandardsIMFInternational Monetary FundIORWGInternational Operational Risk Working GroupIOSCOInternational Organization of Securities CommissionsIPPFInstitute of Internal Auditors’ Standards for the Professional Practice of InternalAuditingISOInternational Organization for StandardizationITInflation TargetingLCRLiquidity Coverage RatioLTVLoan-to-Value RatioMoUMemorandum of UnderstandingNBMNational Bank of MoldovaNCFMNational Commission for FinancialMarketsNCFSNational Committee on Financial StabilityNSFRNet Stable Funding RatioO-SIIOther Systemically Important InstitutionsPSAPublic Services AgencyRPPIResidential Property Price IndexSBFNSustainable Banking and Finance Network SREPSupervisory Review and Evaluation ProcessSSState Securities EXECUTIVE SUMMARY The National Bank of Moldova (NBM) has emerged from a challenging history regarding trustand accountability, significantly influencing its current transparency and communicationpractices.The NBM’