Republic of Moldova

This paper presents Republic of Moldova’s Financial System Stability Assessment report. Although they remain contained for now, risks to financial stability are rising, as the credit‑to‑gross domestic product ratio has reached its highest level since 2015 and house prices are at historical peaks. The banking system remains broadly resilient under a severe adverse scenario, supported by strong liquidity buffers across all banks and high initial capital in some institutions. Further strengthening of supervision will require additional resources. Ensure that the National Bank of Moldova prioritizes financial stability objectives above developmental objectives and enhances its governance; further strengthens risk-based supervision (RBS); and improves the major acquisitions framework. The report suggests conducting sectoral and institutional risk assessments for all supervised sectors and entities based on the RBS methodology; increase targeted on-site inspections using institutional risk profiles; and develop a sanctioning policy.