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Business and Economics > Banks and Banking

You are looking at 1 - 10 of 48 items for :

  • Type: Journal Issue x
  • Moldova, Republic of x
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Cover Technical Assistance Reports
Republic of Moldova: Technical Assistance Report-Design Considerations for a New Bank Liquidation Framework
International Monetary Fund. Legal Dept.
and
International Monetary Fund. Monetary and Capital Markets Department
At the request of the National Bank of Moldova (NBM), a technical assistance (TA) mission of the Monetary and Capital Markets Department and the Legal Department visited Chisinau during November 28 to December 5, 2022, to assist with the design of a revised bank liquidation framework. The mission reviewed three stylized models for bank liquidation – i.e., a purely administrative model in which a public authority (e.g., the resolution authority) directs the liquidation procedure, a judicial model that relies on court-supervised liquidation procedures, and a hybrid model in which a dedicated liquidator carries out the liquidation process under supervision of the court. It identified important considerations in support of a continued (albeit reduced) role for the NBM in bank liquidation and concluded that a hybrid model could be a viable option for Moldova: by shifting more responsibilities to the judiciary, the NBM’s Resolution Division could free up some resources, while maintaining synergies between the NBM’s responsibilities for adopting early intervention measures and (the planning of) bank liquidation. The mission recommended that, in such a model, the NBM retains the power to (i) initiate liquidation; (ii) appoint or propose liquidators; and (iii) undertake a ‘Purchase and Assumption’ type of transaction, whereby the deposits of the failing bank are transferred to a willing buyer. It also provided detailed guidance on, among others, (i) the triggers for determining when liquidation should be initiated; (ii) the process for commencing the liquidation process; (iii) the legislative design of transfer powers and associated safeguards; (iv) the role and appointment of liquidators; and (v) legal protection of the NBM.
Keywords:
Republic of Moldova; Bank Liquidation; Bank Failures; Purchase and Assumption; Depositors; Financial Stability.; bank liquidation model; Moldovan bank liquidation regime; NBM staff; NBM Law; liquidation framework; Financial sector stability; Bank resolution framework; Bank resolution; Banking crises
Cover IMF Working Papers
Determinants of Zombie Banks in Emerging Markets and Developing Economies
Torsten Wezel
,
Hannah Sheldon
, and
Zhengwei Fu
While deeply undercapitalized banks have been shown to misallocate credit to weak firms, the drivers of such zombie banks are less researched, particularly across countries. To furnish empirical evidence, we compile a dataset of undercapitalized banks from emerging markets and developing economies. We classify zombie banks as those not receiving remedial treatment by owners or regulators or, alternatively, remaining chronically undercapitalized. Using logit regressions, we find that country-specific factors are more influential for zombie status than bank characteristics, alhough some become significant when disaggreating by region. The paper’s overall findings imply the need for a proper regulatory framework and an effective resolution regime to deal with zombie banks more decisively.
Keywords:
Banks; Capital Requirements; Financial Crises; summary statistics; zombie bank; zombie share; zombie status; equity ratio; Banking crises; Bank resolution; Credit; Asia and Pacific; Global; Europe; Africa
Cover Technical Notes and Manuals
Resolving Opaque Bank Ownership and Related-Party Exposures
Edda R Karlsdóttir
,
Rachid Awad
,
Ender Emre
,
Alessandro Gullo
,
Aldona Jociene
, and
Constant Verkoren
This note intends to provide advice to bank supervision and resolution authorities and policymakers seeking to deal with opaque bank ownership or significant overhang of related-party exposures.
Keywords:
bank Ownership structures; bank Ownership transparency; IMF Library; bank owner; related-party transaction; Basel Core Principles; Anti-money laundering and combating the financing of terrorism (AML/CFT); Bank resolution; State-owned banks; Global
Cover IMF Staff Country Reports
Republic of Moldova: Third Reviews Under the Extended Credit Facility and the Extended Fund Facility Arrangements, and Request for a Waiver for Nonobservance of Performance Criterion-Press Release; Staff Report; and Statement by the Executive Director for Republic of Moldova
International Monetary Fund. European Dept.
This paper presents the Republic of Moldova’s Third Reviews under the Extended Credit Facility and the Extended Fund Facility Arrangements, and Request for a Waiver for Nonobservance of Performance Criterion. As the outlook is subject to high uncertainty, near-term priorities should remain focused on mitigating the impact of the war, ensuring energy security, adapting contingency plans to evolving risks, and maintaining an appropriate policy mix. Once near-term pressures from the crises subside, the authorities appropriately plan to reorient spending toward supporting the recovery. Moldova remains in a precarious position. Russia’s war in Ukraine and its proximity to Moldova continue to fuel security concerns, while the social fabric remains fragile and stretched by high food and energy prices. Prudent use of contingency plans has helped reduce energy security risks and supported the most vulnerable through the cost-of-living crisis. Continued strong reform implementation—supported by the program—helps build solid foundations for sustainable long-term development.
Keywords:
reform agenda; Policy discussion; monetary policy easing; reform path; inflation consultation clause; Inflation; Budget planning and preparation; Loans; International reserves; Corruption; Global
Cover The IMF and Capacity Development: Evaluation Report 2022
The IMF and Capacity Development: Evaluation Report 2022
International Monetary Fund. Independent Evaluation Office

Abstract

Capacity development (CD) is a key function of the IMF, aiming to assist its member countries develop their institutional and human capacity to design and implement sound macroeconomic and financial policies. CD has been provided to all IMF member countries at some point, although it is directed mainly toward low- and middle-income countries. CD represents about one-third of the IMF’s administrative budget, having expanded substantially in the past decade. This evaluation assesses how effective the IMF has been in meeting the CD needs and expectations of recipient countries, and the Fund’s institutional objectives for CD, during 2012-20. It also provides an initial review of how IMF CD adapted to the challenges of the COVID-19 pandemic. The evaluation finds that IMF CD was relevant, valued, and broadly effective. Recipients, donors, and the wider membership saw IMF CD as being of the highest technical quality in the Fund’s core areas of expertise and generally perceived that it had become better tailored to recipient needs and circumstances. Overall, Fund CD has supported member countries in building the institutional capacity, in a very wide range of country circumstances. The IMF has also put substantial effort into integrating CD with surveillance and programs, which has in general enhanced its overall engagement with member countries. While recognizing these achievements, the evaluation also identifies a number of important shortcomings and challenges. The evaluation includes recommendations to enhance the strategic framework for, and prioritization of, CD; information available to Executive Directors and opportunities to exercise their oversight role; the integration of CD with surveillance and programs, particularly in the context of programs; CD ownership and delivery; the monitoring and evaluation framework; the sustainability of the CD funding model; and HR policies and incentives to maintain and develop the expertise in the Fund’s core and newly emerging CD topics.

Keywords:
Capacity Development; Technical Assistance; Training; Donors; Capacity Building; Institutional Capacity; IMF CD; CD strategy review; CD resource; CD ownership; CD work; COVID-19; Absorptive capacity; Climate change; Information and data management; Global; Middle East and Central Asia; Middle East; Central America; Southeast Asia; North Africa; Africa; Western Hemisphere; Europe; Asia and Pacific
Cover IMF Staff Country Reports
Republic of Moldova: Selected Issues
International Monetary Fund. European Dept.
Selected Issues
Keywords:
governance framework; E. Analyzing Moldova's public enterprise sector; Policy consideration; monetary policy friction; governance of public enterprises; Public enterprises; Central bank policy rate; Exchange rates; Loans; Credit; Eastern Europe; Global
Cover IMF Staff Country Reports
Republic of Moldova: Staff Report for the 2020 Request for Disbursement Under the Rapid Credit Facility and Purchase Under the Rapid Financing Instrument-Press Release; Staff Report; and Statement by the Executive Director for the Republic of Moldova
International Monetary Fund. European Dept.
This paper discusses the Republic of Moldova’s IMF staff report for Request for Disbursement Under the Rapid Credit Facility and Purchase Under the Rapid Financing Instrument. The IMF support will help finance the health and macroeconomic stabilization measures, catalyze donor support, and shore up confidence in Moldova. While downside risks have intensified, public debt remains sustainable with low risk of distress. Beyond the immediate response, the authorities have reinforced their commitment to engage in a governance-focused arrangement with the IMF in the coming months. The IMF stands ready to support Moldova in addressing its immediate and medium-term policy challenges. The authorities’ policies aim at mitigating the economic and social impact of the crisis and supporting the recovery, while maintaining macroeconomic and financial stability. They have ramped-up spending to respond to urgent healthcare needs, provided temporary tax relief and subsidized credit schemes to protect employment and businesses, and strengthened social assistance and unemployment programs. The National Bank of Moldova is ensuring orderly exchange rate adjustment and preventing liquidity distress. Financial policies continue to focus on prudent restructuring of banks’ credit portfolios subject to maintaining loan classification and provisioning standards.
Keywords:
ISCR; CR; financing; IMF support; pandemic; emergency financing request; support; financing gap; IMF lending tracker; Executive Board discussion; Credit; International reserves; Service exports; COVID-19; Current account balance; Global; Europe
Cover IMF Staff Country Reports
Republic of Moldova: Staff Report for the 2020 Article IV Consultation and Sixth Reviews Under the Extended Credit Facility and Extended Fund Facility Arrangements-Press Release; Staff Report; and Statement by the Executive Director for the Republic of Moldova
International Monetary Fund. European Dept.
This paper presents 2019 Article IV Consultation with the Republic of Moldova and its Sixth Reviews Under the Extended Credit Facility and Extended Fund Facility Arrangements. Moldova’s economic growth remained solid in the first three quarters of 2019, with output expanding nearly 5 percent, supported by strong domestic demand. The three-year program has been broadly successful in achieving its objectives. Comprehensive reforms have rehabilitated the banking system and strengthened financial sector governance, entrenching macrofinancial stability. Prudent and well-coordinated policies are needed to safeguard the progress achieved. Decisive governance and institutional reforms are necessary for faster, sustainable, and inclusive growth. Safeguarding central bank independence is a priority. The inflation-targeting (IT) regime remains appropriate, but additional efforts are needed to improve policy credibility, promote exchange rate flexibility, and disincentivize foreign currency intermediation. Widespread governance and institutional vulnerabilities are major impediments to accelerating income convergence. Addressing these could have significant growth dividends through faster capital accumulation, reduced labor and human capital headwinds from emigration, and higher productivity.
Keywords:
ISCR; CR; debt; state; governance; THE ECF; inflation-targeting regime; reform agenda; executive board discussion; disbursement SDR; banking fraud; Public investment and public-private partnerships (PPP); Public investment spending; Global; Europe; Eastern Europe
Cover IMF Staff Country Reports
Republic of Moldova: Selected Issues
International Monetary Fund. European Dept.
This Selected Issues paper provides a systematic assessment of Moldova’s governance and institutional frameworks. It follows guidelines approved by the IMF executive board, which were developed to deliver systematic and even-handed analysis on macroeconomically critical governance and institutional vulnerabilities. This paper also focuses on seven key areas for IMF engagement: corruption, rule of law, regulatory framework, fiscal governance, financial sector oversight, anti-money laundering/combating the financing of terrorism, and central bank governance. The analysis is based on internationally comparable data, diagnosis from IMF technical assistance reports, as well as other expert assessments. Strengthening the judiciary and rule of law and accelerating state-owned enterprises (SOE) reform are clear priorities. The widespread nature of governance vulnerabilities and institutional weaknesses in Moldova, combined with capacity constraints, creates challenges for policy formulation and prioritization. Policy efforts should therefore focus on strengthening rule of law and reforming Moldova’s judiciary system, as well as building capacity and increasing the autonomy of key institutions. Steadfast SOE reform would foster competition, investment, and productivity, while reducing fiscal risks.
Keywords:
ISCR; CR; Moldova; firm; government; IMF staff calculation; IMF governance framework; CFT framework; inflation-targeting regime; judiciary system; discretionary power; revenue institution; Anti-money laundering and combating the financing of terrorism (AML/CFT); Corruption; Global competitiveness; Global; Europe; Tax evasion
Cover IMF Staff Country Reports
Republic of Moldova: Fourth and Fifth Reviews Under the Extended Credit Facility and Extended Fund Facility Arrangements, Completion of the Inflation Consultation, and Request for Extension of the Arrangements and Rephasing of Access-Press Release; Staff Report; and Statement by the Executive Director for the Republic of Moldova
International Monetary Fund. European Dept.
This paper discusses Republic of Moldova’s Fourth and Fifth Reviews Under the Extended Credit Facility and Extended Fund Facility Arrangements, Completion of the Inflation Consultation, and Request for Extension of the Arrangements and Rephasing of Access. The Moldovan authorities have taken decisive corrective measures to bring the Fund supported program back on track and to achieve its objectives of ensuring macroeconomic stability and advancing reforms. Going forward, it is critical that the authorities continue to pursue prudent policies and structural reforms aimed at strengthening the financial sector, maintaining fiscal sustainability, and creating space for social and infrastructure spending. Policies remain focused on cleansing the financial sector, ensuring growth friendly fiscal policy, and enhancing transparency in the energy sector. The authorities are committed to completing the rehabilitation of the banking system, addressing vulnerabilities in the non-bank sector, promoting predictable energy tariff setting, and maintaining fiscal sustainability to preserve space for social and infrastructure spending.
Keywords:
ISCR; CR; EFF arrangement; government; energy tariff policy; Executive Board discussion; growth potential; Republic of Moldova's quota; Debt sustainability analysis; Budget planning and preparation; Credit; Global; Eastern Europe