The ministries, central banks, crisis resolution institutions and financial supervision authorities of the Nordic and Baltic countries have signed a cooperation agreement of mutual understanding on the organization of cooperation concerning cross-border financial stability.
“The larger banks operating in Estonia have Scandinavian roots, and their solvency among other things also depends on good cooperation between the Nordic financial supervision and crisis resolution authorities and their banks,”- Kilvar Kessler, Chairman of the Management Board of the Estonian Financial Supervision Authority (EFSA) stated.
Financial crisis cooperation has been previously affirmed in the EU with a separate directive. Along with other things, the directive also stipulates the formation of crisis resolution colleges consisting of member state representatives for the larger banking groups. The agreement aims to reaffirm the readiness for financial stability-related cooperation in the Nordic-Baltic region, as banking is very strongly linked between states there. Among the parties of the cooperation agreement are Estonia, Latvia, Lithuania, Finland, Sweden, Denmark, Iceland and Norway.
EBRD President Suma Chakrabarti noted the recent breakthrough in Moldova’s banking sector, on his visit to Chisinau. “After financial scandals tarnished Moldova’s reputation, the arrival of a strong strategic foreign investor can now become a turning point and an opportunity to take decisive steps,” President Chakrabarti said. He stressed that the EBRD jointly with the International Monetary Fund, the European Union (EU) and other key partners, will continue efforts aimed at enhancing the resilience of the banking sector. But the country’s commitment is key: “The authorities must create an enabling environment to attract the right kind of investors,” – the President Chakrabarti stated.
President Chakrabarti urged the regulator to maintain strict transparency rules and close scrutiny. “Non-transparent shareholders still present in the ownership structure of the largest banks must be replaced with fit and proper investors,”-he noted.
The country’s two largest banks, Moldova Agroindbank and Moldinconbank, representing more than half of the country’s banking sector, are currently under the particular management of the National Bank of Moldova.
The EBRD is the largest institutional investor in Moldova. Since the start of its operations in the country, the Bank has invested over 1.2 billion euro in almost 120 projects. In Moldova its work focuses on restructuring the banking sector, supporting private firms, enhancing energy security and promoting better infrastructure.
Post-Soviet countries tackle vulnerabilities in the financial sector
