The European Union provides about €1.2 million in assistance within a project aimed at strengthening the capacities of the National Bank of Moldova (NBM). The Twinning project launched on June 30 aims to provide technical assistance for strengthening the prudential supervision framework within the harmonization with the EU norms and standards and to increase the institutional and administrative capacity of the NBM in view of ensuring the proper functioning of the banking system, IPN reports.

According to a press release of the EU Delegation to Moldova, the objective of the project is to improve the banks’ prudential regulations oriented towards ensuring a sound and competitive banking sector, pursuant to the commitments undertaken by the Republic of Moldova through the Association Agreement with the European Union, the Moldovan legislation is to be harmonized with the EU provisions and international standards related to Basel III within a period of 3 years from its signing.

Their implementation will have a direct impact on the banking sector in terms of risk reduction. Thus, the Twinning project will assist the National Bank of Moldova to exercise the banking supervision function within a modern and efficient institutional context.

The project “Strengthening the National Bank of Moldova’s capacity in the field of banking regulation and supervision in the context of EU requirements” will be implemented by the central bank of Moldova together with the consortium composed of the National Bank of Romania and De Nederlandsche Bank during a two-year period.