MAINTENANCE OF THE MOLDOVAN BANKING SECTOR STABILITY IN THE CONTEXT OF COVID-19 PANDEMIC

• Main Author: Anastasia BEJAN
• Format: Article
• Language: English
• Published: Academy of the Economic Studies of Moldova 2020-02-01
• Series: Economica
• Subjects: central bank; risk; financial crisis; covid-19; banking sector; stability
• Online Access: https://irek.ase.md/xmlui/bitstream/handle/1234567890/382/Bejan-A_economica_2020_nr2.pdf?sequence=1&isAllowed=y

The COVID-19 pandemic has distorted the economic situation around the world, affecting the incomes of enterprises and consumers. This fact also influences the financial situation of banks, given the key role of the banking system in accumulating temporarily free money from the economy and investing these resources in loans. In the current situation, the Central Banks’ efforts from all over the world are aimed at ensuring the stability of the banking sector, maintaining the financial intermediation and the functions of banks, as well as mitigating the potential effects of slowing economic growth. The present article examines the measures taken by the Central Banks of the European Union to mitigate the effects of the COVID-19 pandemic, the actions taken by the National Bank of Moldova in this context and as well the measures needed to be taken forwards by the commercial banks to preserve their capital and liquidity.