Implementation of basel agreements in the banking sector of the Republic of Moldova

Abstract

Basel III Agreement is a framework of bank regulation which aims to strengthen the stability of the financial system by applying stringent standards designed to improve its ability to absorb shocks from the economic and financial sector and to reduce the risk of contamination from the financial sector to the real economy. The National Bank of Moldova approved the Basel III Implementation Strategy in the light of the European legislative framework in April 2016. The reform plan will focus on continuing the process of promoting reforms in the banking sector, in particular establishing a transparent shareholder structure attracting new solid investors, adequately assessing the bank's management and identifying transactions with affiliated banks. The purpose of the article соnsists in the identification, analysis, monitoring the actions required to be undertaken by the Central Bank and banks in order to implement the Basel III requirements and to harmonize the legislative framework in the banking field with EU directives.