The National Bank of Moldova will supervise the nonbanking financial system. More exactly, the NBM will license, authorize and issue the permit for state registration, will regulate and supervise the activity of insurers, reinsurers and intermediaries in insurance or reinsurance and also of the National Bureau of Motor Insurers of Moldova, savings and loan associations, credit bureaus and nonbanking lending organizations. This is provided in a bill that was given a final reading by Parliament, IPN reports.
The powers to oversee the nonbanking financial system will be taken over from the National Commission for Financial Markets on July 1, 2023. The transit period is needed for the central bank to adjust its activity.
The Government, which drafted the bill, said the given provisions derive from the need to strengthen the whole financial market and to prevent eventual risks related to the nonbanking financial sector. The regulation mechanism proposed by this bill is widely applied worldwide.
Following the adoption of this law, the authority of the National Commission for Financial Markets will be extended to cover the issuers of securities, professional participants in the nonbanking financial market and capital market investors, non-state pension funds.
