CROSS-BORDER BANKING REGULATIONS IN THE EVENT OF CRISIS
CROSS-BORDER BANKING REGULATIONS IN THE EVENT OF CRISIS

Author(s): Aliona Cara-Rusnac
Subject(s): Economy, Health and medicine and law, Economic development
Published by: Editura Universităţii »Alexandru Ioan Cuza« din Iaşi
Keywords: financial crisis; Greek crisis; banking activity; health crisis; pandemic; Moldovan banking activity;
Summary/Abstract: The article will analyze the impact of different waves of crisis on the Moldovan banking activity. There will be presented the Moldovan banking activity and its resistance to the crisis during different waves of crisis: big world crisis 2007-2009, Moldovan banking crisis 2014, the Greek sovereign debt crisis in the spring of 2010 and finally health crisis (2020-present). In conclusion, the author will come up with recommendations referring mitigating regulatory risks of the banking activity in particular emphasizing its relations to the customers, regarding improving the regulatory banking framework during crisis based on the best strategies implemented by the developed countries. It will be argued that there is a need to tackle solutions to banks problems at the European, International level that the national level, and will be considered the role of the International, European and national monitoring institutions to provide appropriate solutions and if necessary to adopt restrictions. The crisis periods have shown that past and/or current legislative framework is inadequate to face the financial and/or health crisis, also the banking crisis that took place in Moldova and 2014 and the collapse of three banks showed the gaps in the national legislation and weak cross border cooperation in investigating financial crimes. Another issue is that the banks played a crucial role during crisis in supporting and/or no supporting client as the first impact of the crisis is the hit on the economy and in particular on the small and medium enterprises, though it is in state’s duty to support small and medium enterprises, by subventions, cooperation with banks to wave penalties and/or interests, pay rents and other facilities. Currently countries are struggling with health crisis, banks are experiencing clients’ resistance and impossibility in paying the debts, in these case the banks had to change their strategies this is particularly the case for cross- border banks, where many assets from a variety of countries may be held by founders from different countries, thus applying different jurisdiction. By April 2020, about half of the world’s population was under lockdown, the banks have switched from classic to electronic payments.

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