Republic of Moldova: Financial Sector Assessment Program-Technical Note on Macroprudential Framework and Policies

Macroprudential governance has advanced following recent reforms yet clarifying mandates and strengthening coordination remain essential for timely and effective action. The National Bank of Moldova (NBM) sits at the center of the framework—supervising both banks and non-bank lenders after the 2023 twin-peaks reform—while the National Commission for Financial Markets (NCFM) oversees capital markets. This consolidation has enhanced oversight and consistency. Both institutions are operationally independent and legally tasked with preserving financial stability, but the Law on the NBM assigns equal weight to financial stability and support of government policy without a clear hierarchy, raising the risk of ambiguity when objectives conflict. Policy coordination and information exchange occur through the National Committee for Financial Stability (NCFS), the formal macroprudential authority and high-level inter-agency forum with comply-or-explain powers. Coordination and communication have also improved through internal mechanisms (e.g., a Financial Stability Working Group—FSWG—and frequent Board discussions) and external outputs—an annual Financial Stability Report (FSR; since 2019), a quarterly Financial Stability Assessment Report (since 2024), a macroprudential policy strategy, and publication of material on the NBM website.