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 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.