IMPROVING PRUDENTIAL SUPERVISION IN ORDER TO ENSURE BANK STABILITY IN MOLDOVA
IMPROVING PRUDENTIAL SUPERVISION IN ORDER TO ENSURE BANK STABILITY IN MOLDOVA

Summary/Abstract: The collapse in 2008 and subsequent global crisis highlighted the need for closer supervision of the banking business, nationally and internationally. This is possible through better coordination between supervisors in different countries in terms of early detection of risk factors and anticipation effects on banks that manage risk properly. Given the interconnections within the banking system and support the national economy(and global) over banks, it is important for supervisors to maintain control over these institutions in the field of risk management. It is noted, however, that despite the existence of a large number of limitations imposed by the prudential regulation and supervision of banking systems, both national and international have found themselves in front of a huge global financial crisis. Basel III is more than a set of regulations, its provisions are fundamentally and testing banks' ability to produce profit. Reforms aimed at micro level - in order to increase the resistance of individual banking institutions to periods of stress and, respectively, the level of macro - in order to reduce the frequency of financial crises. The new standards are designed to improve the banking sector's ability to absorb shocks through superior risk management under the coordinates of enhanced governance and increased transparency conditions.

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