The National Bank of Moldova has published a draft Executive Committee decision to amend its prudential framework on banks’ own funds, capital requirements and related supervisory processes, including by adding a new regime for “eligible liabilities”. The draft is framed as a transposition of selected provisions of the European Union Capital Requirements Regulation and related delegated acts, as amended in 2024. The proposed package would revise definitions and eligibility conditions for own-funds instruments and introduce detailed rules for eligible liabilities, including excluded liability categories, conditions for recognition, maturity treatment, deductions and limited exemptions for short-term trading book holdings. It would also introduce a new deduction mechanism for insufficient coverage of non-performing exposures, with detailed classification criteria, cure and probation rules, and time-based coverage factors differentiated between secured and unsecured portions, alongside a carve-out for purchased non-performing exposures held by a newly defined “specialised debt restructuring entity” subject to specified balance-sheet, funding and liquidity thresholds. Other changes include a prudential filter for securitisation-related gains, an output floor for total risk exposure amount set at 72.5% of the standardised measure, a simplified approach for trading book capital where trading activity remains below specified thresholds, and strengthened conditions and approval triggers for profit distributions, including National Bank pre-approval for cumulative annual distributions at or above 25% of the prior year’s net profit. The draft sets an application date of 1 July 2026, with provisions linked to internal ratings-based (IRB) approaches applying from 1 January 2027. The new deduction for insufficient non-performing exposure coverage would not apply to exposures originated before the draft decision enters into force.
National Bank of Moldova 2025-10-13
National Bank of Moldova publishes draft changes to bank capital rules introducing eligible liabilities and new non-performing exposure deductions
The National Bank of Moldova released a draft decision to amend its prudential framework, aligning with the EU Capital Requirements Regulation. Key changes include revised definitions for own-funds instruments, rules for eligible liabilities, a new deduction mechanism for non-performing exposures, and strengthened conditions for profit distributions. The draft sets an application date of 1 July 2026, with specific provisions for internal ratings-based approaches effective from 1 January 2027.