Deposit guarantee ceiling in banking system increased to 50,000 lei
foto: publika.md
Starting with January 1, 2020, the bank deposit guarantee ceiling is to be increased to 50 thousand lei, compared to 20 thousand lei at present, it transmits ipn.md with reference to a draft amendment approved by the Government in some legislative acts in force.
The document was developed to improve the legal framework for deposit insurance and strengthen the stability of the financial sector so that the country's deposit guarantee system complies with the fundamental international deposit-guarantee principles.
The amendments stipulate that from 1 January 2020, the Deposit Guarantee Fund in the banking system will also guarantee deposits with banks, in national currency and in foreign currency, held by private legal entities. At present, only the deposits of individuals are guaranteed. By extending the categories of guarantee deposits and guaranteeing deposits to 50 thousand lei, the money will be secured by 3.8 million depositors, and the total insured amount will be 13.6 billion lei. Thus, 95.9% of the total deposits and 23.1% of their total volume will be guaranteed.
The draft also establishes the obligation to periodically review the Fund's objectives and the system of setting the contributions for risk-based licensed banks, also redefining the list of unsecured deposits.
The draft law was drafted by the Deposit Guarantee Fund in the banking system jointly with the National Bank of Moldova and the Ministry of Finance. Its elaboration is set out in the Memorandum of Understanding with the EU on Macro-Financial Assistance, the Memorandum on Economic and Financial Policies and the Action Plan for the Implementation of the EU-Moldova Association Agreement in the period 2017-2019.
The document was developed to improve the legal framework for deposit insurance and strengthen the stability of the financial sector so that the country's deposit guarantee system complies with the fundamental international deposit-guarantee principles.
The amendments stipulate that from 1 January 2020, the Deposit Guarantee Fund in the banking system will also guarantee deposits with banks, in national currency and in foreign currency, held by private legal entities. At present, only the deposits of individuals are guaranteed. By extending the categories of guarantee deposits and guaranteeing deposits to 50 thousand lei, the money will be secured by 3.8 million depositors, and the total insured amount will be 13.6 billion lei. Thus, 95.9% of the total deposits and 23.1% of their total volume will be guaranteed.
The draft also establishes the obligation to periodically review the Fund's objectives and the system of setting the contributions for risk-based licensed banks, also redefining the list of unsecured deposits.
The draft law was drafted by the Deposit Guarantee Fund in the banking system jointly with the National Bank of Moldova and the Ministry of Finance. Its elaboration is set out in the Memorandum of Understanding with the EU on Macro-Financial Assistance, the Memorandum on Economic and Financial Policies and the Action Plan for the Implementation of the EU-Moldova Association Agreement in the period 2017-2019.