Regulatory Alerts2025-02-16
Regulation No. 110/2018 on Capital Buffers of Banks, as amended by Decision No 3/2025
The Executive Board of the National Bank of Moldova issued Regulation No. 110/2018 to establish capital buffer requirements for banks, which were subsequently amended by Decision No 3/2025 to align with updated EU directives and refine regulatory technical standards. The regulation mandates that banks maintain specific capital buffers, including a 2.5% capital conservation buffer, a bank-specific countercyclical capital buffer, and buffers for systemically important institutions and systemic risk, all calculated based on total risk exposure. It further details the methodologies for determining buffer rates, particularly for exposures in Moldova and foreign states, and imposes restrictions on distributions for banks failing to meet these combined capital requirements.