Regulatory Alerts2013-12-09
Regulation on Banks' Transactions with Their Related Parties
The National Bank of Moldova issued Decision No. 240 to approve the Regulation on Banks' Transactions with Their Related Parties, establishing strict requirements for identifying related parties and governing their transactions. The regulation mandates that such transactions must reflect the bank's interests, be conducted on market terms, and adhere to maximum exposure limits of 10 percent for individual related parties and 20 percent for aggregate exposures. It further requires prior board approval for significant transactions, the maintenance of detailed registers, and quarterly reporting to ensure compliance and mitigate credit risks.
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