Approved by the Protocol of National Bank of the Republic of Moldova of August 8, 1997, No. 28

Regulations about bank liquidity

I. General provisions

These Regulations are developed according to the powers of National Bank of Moldova provided by articles 11 and 44  of the Law No. 548/1995 on National Bank of Moldova (pereopublikovan: The official monitor of the Republic of Moldova, 2015, Art. No. 297-300, 544), with subsequent changes, and Art. 76 of the Law No. 202/2017 on activities of banks (The official monitor of the Republic of Moldova, 2017, No. 434-439, the Art. 727), with subsequent changes.

For the purpose of ensuring development of the strong and competitive financial sector, non-admission of the increased risk in financial system, depositor protection and maintenance of the adequate level of liquidity by banks with these Regulations the National Bank of Moldova establishes the following rules which aim to establish adequate connection between the amount of the invested funds of bank (assets) and the amount of financial resources (liabilities).

These regulations are applied to banks with the location in the Republic of Moldova, and also to departments of banks of foreign states which are licensed by National Bank of Moldova (further - banks).

II. Basic concepts

For the purpose of these Regulations the following basic concepts are used:

1. Liquidity is capability of financial institution to be placed in assets and to provide timely accomplishment of the payment obligations on term.

2. The I principle of liquidity provides: the amount of assets of bank with repayment period and did not exceed 2 years the amount of its financial resources any more.

3. Ceased to be valid according to the Resolution of National Bank of the Republic of Moldova of 26.02.2020 No. 44

3-1. The III principle of liquidity provides that the liquidity by repayment periods up to 1 month, 1-3 months, 3-6 months, 6-12 months and more than 12 months expressed as ratio between the corrected effective liquidity and necessary liquidity on every repayment period shall not be lower than a coefficient established by these regulations.

4. Remaining period before loan repayment - the remained period of time before final date of payment due date of the credit or its tranche calculated since the accounting period.

5. Remaining period before repayment of the deposit - the remained period of time before final date of payment due date of the deposit or its part calculated since the accounting period.

6. Savings deposit of physical person - type urgent and poste restante the accounts placed for saving of money on particular purposes which is paid on demand or according to payment due date.

7. Liquid securities are the government securities issued by the Ministry of Finance of the Republic of Moldova and the securities issued by National Bank of Moldova, not pledged and free from prohibitions.

8. Net current interbank means represent difference between the amount of the credits issued to other banks and the money which is due from banks with remaining period before repayment 1 month and less and the amount of the loans and money which are due to banks with remaining period before repayment 1 month and less.

9. The countries of category A are member countries of the European Union and the country, being full-fledged members of the Organization of cooperation and economic development (OCDE); if the country of this category re-structures external public debt, this country is excluded from category A for a period of 5 years.

10. Excess of liquidity is the positive difference between the corrected effective liquidity and necessary liquidity, except for the first section of repayment period which represents positive difference between effective liquidity and necessary liquidity.

11. Deficit of reserves is the missing amount determined according to provisions of the legislation of national bank of Moldova by the mode of required reserves.

12. The raised liquidity risk is the liquidity risk of one bank before one face or group of the connected persons whose amount of obligations/debts makes at least 10% from amount of debts, others, than loans and credit obligations.

13. Group of the connected persons are two or more physical persons and/or legal entities:

a) which constitute if other is not proved, the single liquidity risk as one of persons owns, directly or indirectly, control over another or other persons;

b) between which there is no control, but which shall be considered as representing single liquidity risk as between them there are such communications that removal by one person of the deposit, closing of the current account and/or use of the credit obligation received at bank can entail removal by other persons of deposits, closing of accounts and/or use of the credit obligation received at bank.

14. The amounts connected with derivative financial instruments - values of derivative financial instruments in balance and the conditional accounts and the amount which will are received/be paid within transactions with derivative tools.

III. Principles and liquidity management

1. I principle (long-term liquidity)

The indicator of long-term bank liquidity reflects the following ratio:

Amount of assets of bank in shape:

(1) the credits and placements 2 years issued to banks with remaining period before repayment and more;

(2) the credits and payments in advance issued to clients with remaining period before repayment 2 years and more;

(3) financial leasing, with remaining period before repayment 2 years and more;

(4) share in the capital of economic agents (including banks);

(5) financial assets, on depreciated cost, with remaining period before payment 2 years and more;

(6) tangible assets;

minus the size of discounts for losses on these assets calculated according to Regulations about classification of assets and contingent obligations; depreciation of tangible assets and difference from revaluation of these assets,

and amount of the following financial resources:

(1) 1) own means determined according to the Regulations about own means of banks and requirements of the capital approved by the Resolution of Executive committee of National Bank of Moldova No. 109/2018;

(2) the liabilities received from banks, and the liabilities received from clients (excepting savings deposits of physical persons), with remaining period before repayment 2 years and more;

(3) 50% of the liabilities received from banks, and the liabilities received from clients (excepting savings deposits of physical persons), with remaining period before repayment from 1 to 2 years;

(4) 10% of the liabilities poste restante received from clients (excepting savings deposits of physical persons);

(5) savings deposits of physical persons with remaining period before repayment 2 years and more;

(6) 60% of savings deposits of physical persons with remaining period before repayment from 1 to 2 years;

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