LAW OF THE REPUBLIC OF MOLDOVA

of October 12, 2018 No. 209

About National committee on financial stability

The parliament adopts this ordinary law.

Chapter I General provisions

Article 1. Subject and purpose of the law

(1) This law regulates procedure for the organization and functioning of National committee on financial stability for the purpose of coordinating of implementation of macroprudential policy, prevention, reducing or elimination of the risks menacing to financial stability at the system level and also management of system financial crisis situations.

(2) the National committee on financial stability (further - Committee) is structure of interdepartmental cooperation, without the status of the legal entity which represents the macroprudential national appointed authority responsible for coordinating of implementation of macroprudential policy and activities for prevention and permission of system financial crisis situations according to provisions of this law.

Article 2. Basic concepts

For the purpose of this law the following concepts are used:

system financial crisis - system crisis in sense of the Law on improvement of banks and the bank resolution No. 232/2016;

macroprudential tools - the tools applicable for goal achievement of macroprudential policy, including requirements to the capital, requirements to assets, requirements to liquidity and measures connected with management of credit exposure or financing of certain sectors;

macroprudential policy - set the politician and the tools directed to decrease in systemic risk;

systemic risk - risk of violation of financial system which can lead to serious negative consequences for financial system and real economy;

financial system - all subjects of the banking and non-bank financial sector, the financial markets, products and infrastructures of the financial markets;

financial stability - situation in which accumulating of systemic risk is prevented.

Article 3. Structure of Committee, including Expanded committee

(1) are part of Committee:

a) the president of National Bank of Moldova - the chairman of Committee;

b) Minister of Finance;

c) Minister of Economic Affairs;

d) chairman of the National commission on the financial market;

e) the chief executive officer Fonda of guaranteeing deposits in bank system.

(2) in case of Expanded committee, except the members specified in part (1), enter:

a) member of Executive council of National Bank of Moldova responsible for financial stability;

b) member of Executive committee of National Bank of Moldova responsible for function of banking supervision;

c) member of Executive committee of National Bank of Moldova responsible for the bank resolution;

d) chief of division of the National Bank of Moldova responsible for financial stability.

Chapter II Organization and functioning of committee

Article 4. Organization of activities of Committee, including Expanded committee

(1) the National Bank of Moldova provides logistical support and clerical work. Each member of the committee designates the corresponding person from organization who he represents responsible for provision of necessary support in case of record keeping.

(2) Members of the committee or Expanded committee participate personally in committee meetings. According to the procedure of exception it is allowed to replace members with other persons according to rules of their temporary replacement if replacement is proved by temporary impossibility of performance of obligations members by right.

(3) Replacement of members of the committee or Expanded committee in the cases specified in part (2), it is performed by the written notice sent to the chairman of Committee.

(4) representatives of bodies of the public power and other persons who can make the contribution to work of committee can be invited To committee meetings or Expanded committee. The invited persons have no right to vote.

(5) the Performed activities of members of the committee, including Expanded committee, are not paid.

Article 5. Frequency of holding meetings and decision making process

(1) Committee meetings are convened upon the demand of one of members of the committee.

(2) the Expanded committee is convoked on the regular meetings quarterly according to the schedule established at the beginning of each calendar year by members of Expanded committee. Upon the demand of one of members of Expanded committee emergency meetings of Expanded committee can be convened.

(3) Committee meetings are held by the chairman of Committee. Meetings of Expanded committee can be held also by person replacing the chairman in case of temporary impossibility of performance of obligations the chairman.

(4) Each member of the committee or Expanded committee has one voice.

(5) Decisions of Committee and Expanded committee are accepted by a simple majority vote the present members.

(6) Committee meetings are competent with the assistance of all members of the committee. Meetings of Expanded committee are competent with the assistance of at least two thirds of the members having the right to vote. If the quorum was not gained, the chairman of Committee can convene emergency meeting according to the same agenda. The emergency meeting of Expanded committee is competent with the participation of simple majority of the members having the right to vote.

(7) the Organization and functioning of Committee, including Expanded committee, are established by the regulations on functioning accepted by it.

Article 6. Purposes of Committee, including Expanded committee

(1) Within the activities the Committee, including Expanded committee, has the following purposes:

a) promote achievement of ultimate goal of macroprudential policy;

b) offer actions for preparation for crisis situations and plan actions in emergency situations;

c) offer urgent actions in the conditions of system financial crisis.

(2) the Ultimate goal of macroprudential policy consists in assistance to preserving stability of financial system in general, including by strengthening of stability of financial system and restriction of effect of distribution, and also by reducing accumulating of systemic risks, providing thereby thorough contribution of the financial sector to economic growth.

(3) For accomplishment of the obligations the Committee or Expanded committee has the right to request all data and information necessary for achievement of the ultimate goal, including information from the bodies represented by members of the committee or Expanded committee, information from other bodies and subjects for reasonable request, taking necessary measures for ensuring their confidentiality. The notified bodies and subjects shall provide the requested information at the scheduled time.

(4) Members of the committee, including Expanded committee, perform the obligations and obligations provided by this law without prejudice.

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