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2020-12-09

Decision of the NCFM on capital requirements for non-bank credit organizations No 58/1/2020

The National Commission for Financial Markets of Moldova issued Decision No 58/1/2020 to establish regulatory capital criteria for non-bank credit organizations. The rule mandates that these entities maintain capital equal to at least 5 percent of assets if they hold no bank credits, or 10 percent if they do, calculated as equity and subordinated loans adjusted for specific loss provisions. Non-bank credit organizations are required to comply with the 10 percent capital threshold within six months of the decision's entry into force.

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NATIONAL COMMISSION FOR FINANCIAL MARKETS

D E C I S I O N on capital requirements for non-bank credit organizations

No 58/1 of 01.12.2020 (in force as of 18.12.2020)

Official Monitor of the Republic of Moldova No 344-351 Art.1364 of 18.12.2020

REGISTERED: by the Ministry of Justice of the Republic of Moldova No 1608 of 09.12.2020 Minister ___ Fadei NAGACEVSCHI

In order to establish criteria and requirements for holding and maintaining regulatory capital, applied to non-bank lending organizations, pursuant to Article 17 (4) of Law No 1/2018 on non-bank lending organizations (Official Monitor of the Republic of Moldova, 2018, No 108-112, Art.200), the National Commission for Financial Markets DECIDES:

  1. The non-bank credit organization is obliged to hold and maintain regulatory capital in relation to the value of assets at any date of at least:
  1. 5 percent for organizations without bank credits; or
  2. 10 percent for organizations that register bank credits.
  1. For the purpose of complying with the provisions of point 1, the regulatory capital of non￾bank credit organizations shall be calculated as the sum of equity and subordinated loans, adjusted by the surplus (deficit) between the provisions for losses on assets established in accordance with the Regulation on asset classification by non-bank credit organizations, approved by the Decision of the National Commission for Financial Markets No 60/4/2019, and the provisions to cover losses on assets recorded in the entity's accounting.
  2. The concept and essence of equity to be applied for the purposes of this Decision shall be determined in accordance with the law and National Accounting Standards.
  3. Non-bank credit organizations shall comply with the provisions of point 1 sbp.2) of this Decision within 6 months from the date of its entry into force.
  4. This Decision shall enter into force on the date of its publication in the Official Monitor of the Republic of Moldova, shall be communicated to the addressees according to the legislation and shall be published on the official website of the CNPF (www.cnpf.md). CHAIRMAN Valeriu CHIŢAN No 58/1. Chişinău, December 1, 2020.
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