Pursuant to Art.17 of the Law on the National Bank of Moldova no.548-XIII of July 21, 1995, the National Bank of Moldova (NBM) shall establish requirements to banks for the maintenance of required reserves (RR).
Required reserves represent banks’ funds in Moldovan lei and freely convertible currency (USD and EUR), held on accounts opened with the NBM.
The main functions of required reserves held in MDL are the monetary control (in close correlation with liquidity management by the NBM) and the influence of demand for money.
The main role of required reserves in freely convertible currency is to mitigate the expansion of foreign exchange loans.
The main characteristics of required reserve regime established to banks by the NBM are:
The calculation base of required reserves is established as the average daily balances (during the tracking period) of class II „Liabilities” of banks’ balance sheets (except interbank liabilities, liabilities to the NBM and own capital), separately in MDL and freely convertible currency.
The tracking period of funds attracted and the maintenance period of required reserves are of one month and consecutive (the tracking period of attracted means is from the 8th of the previous month to the 7th of the current month and the maintenance period of the required reserves starts with the 8th of the current month and ends on the 7th of the next month).
The required reserve ratio of the calculation base (attracted funds) is the same for the liability items of the same type. A required reserve ratio of 0 % shall apply to the liability items included in the calculation base with a maturity over 2 years.
The required reserves held in MDL are maintained with the National Bank of Moldova on bank’s Loro account and represents the average daily balances held with the NBM during the maintenance period or on the account of required reserves in national currency in the value set by the NBM for the respective tracking period. Reserving in freely convertible currency shall be conducted by maintaining banks’ funds in FCC (USD and EUR) with the National Bank of Moldova on Required reserves account in FCC, in the value set by the NBM for the respective tracking period.
The NBM shall pay banks an interest rate on the portion of required reserves balances that exceeds 5% of liabilities, which is calculated based on these required reserves. Required reserves in MDL and in foreign currency are remunerated at distinct rates, applying the overnight deposits rate of interest rate corridor of the NBM for required reserves maintained in MDL, and for required reserves maintained in foreign currency – the average rate on interest-bearing sight deposits attracted by the banking system in FCC in the respective month.
Statistics of requered reserves maintained by banks in MDL
Statistics of requered reserves maintained by banks in FCC