Peculiarities of Banking organization - Belobrov Angela

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1. Banking system in Moldova Moldova has maintained an efficient, two-levelled banking system since 1993, consisting of the National Bank of Moldova (NBM) and commercial banks. The Moldovan banking sector is considered to be one of the strongest among the CIS-7countries. The National Bank of Moldova was established in 1991, and modelled according to the Central Bank of Romania. It is an autonomous legal entity, subordinated only to the country's parliament. The functions of the central bank are:  The Formation of monetary and foreign exchange policy, as guided by the Bank's own economic analysis;  To act as banker and fiscal agent of the Republic of Moldova;  To license, supervise and regulate the activity of financial institutions. Banking supervision in Moldova is completely in line with Basle Committee standards;  To act as banker to the banks, providing them with credit facilities;  To supervise and facilitate the payments system;  To be the sole issuer of currency;  To hold and manage foreign exchange reserves;  To settle the country's balance of payments. ... 2. Licensing banks The National Bank has the exclusive right for the issuing of bank licenses (as provided in Articles 5, 11 and 44 of the Law on the National Bank of Moldova and Article 4 of the Law on Financial Institutions). No one shall engage in the financial activities listed in Article 26 of the Law on Financial Institutions without a license issued by the National Bank. A foreign bank that wishes to establish a subsidiary on the territory of Moldova must receive a license from the National Bank. ... 3. Expansion of banks in the territory In order to open a branch, a bank shall meet the following requirements: 1. The bank shall have and maintain Tier I Capital and the Ratio of Tier I Capital to Risk Weighted Assets pursuant to the requirements set forth in the Regulation on Risk-Based Capital Adequacy, 2. The bank shall be in operation for at least one year after receiving the license to carry out financial activities, and shall be examined by examiners of the National Bank of Moldova at least once. 3. The bank shall be in compliance with the provisions of the laws of the Republic of Moldova and the regulations of the National Bank of Moldova. ...