The Research on Evolution of Banking System and its Development in the Republic of Moldova

学院（系）： 管理学院

专业班级： 工商管理专业1202班

学生姓名： 安宁Cebanu Andrei

指导教师： 徐宏毅

2016年5月19日

Abstract

The stability and safety of the banking system represent a significant importance for protecting the interests of depositors and to ensure continuity of the work of the financial intermediation and rendering banking services from various agents secure sectors of the national economy. Measures were taken to achieve and maintain the stability of the banking system also contribute to creating the necessary preconditions for attracting investments in the banking system and the accumulation of funds on a temporary basis, which fosters the economic development of the country.

The issues of banking system stability, which concerned both depositors and state authorities, international financial institutions, are addressed in the scientific work of specialists from national and international institutions and dealt with in different development strategies of the financial system, implemented nationally and international. The authorities of many states grant in recent years, particular attention on ensuring stability and reliability of the financial sector, including the banking, as confirmed by the increasing number of reports on financial stability published by international financial institutions and central banks these countries.

The purpose of this paper is to analyze the Moldovan banking system stability, the foundation of the basic directions to stabilize the domestic banking system. The aim is developed in following research tasks:

• understanding fundamental concepts relating to the banking system, Bank stability, and security;
• deepening the analysis of the European standards and practices in the field of ensuring the stability of the banking system and addressing the benefits and application of effective practices in the domestic banking system;
• the impact of competition on the development of international and national banking system.
• an econometric model of evaluating the main factors that affect the stability and safety of the banking system of the Republic of Moldova.

Research objectives include the banking system of the country, including the National Bank and commercial banks and international banking.

目录

Abstract I

Chapter 1 DEVELOPMENT OF BANKING SYSTEM IN MOLDOVA AND ITS IMPACT ON NATIONAL ECONOMY 1

1.1Requirements for creation of the banking system in the Republic of Moldova 1

1.2 The structure of banking system in the Republic of Moldova 4

1.3 Effects of banking system on economic growth 6

1.4 Banking system development of Moldova in the context of international banking market evolution 9

Chapter 2 BANKING SYSTEM DIAGNOSIS OF THE COMPETETIVE DEGREE 12

2.1. Particularities, factors and competitiveness of the banking system forms 12

2.2. Competition analysis-defining element in establishing the diagnosis of market of commercial bank 17

2.3. Leverage analysis results in the bank strategies formulation 24

Chapter 3 ANALYSIS AND DYNAMICS OF THE BANKING SYSTEM IN THE REPUBLIC OF MOLDOVA 28

3.1 The analysis of performance indicators within the banking system of the Republic of Moldova 28

3.2 Analysis of the impact on the development of banking system reforms 36

3.3 Deficiency in the functionality of banking system 39

Chapter 4 BANKING SYSTEM DEVELOPMENT ON THE INTERNATIONAL MARKET AND ITS CONDITION OF COMPETITION 44

4.1 Development trends of the banking industry internationally while enhancing competitiveness 44

4.2 Competetive increasing banking of Republic of Moldova sector regarding pre-accession to the European Union and the integration of European financial markets 54

Chapter 5 EFFICIENT FUNCTIONING OF THE BANKING SYSTEM OF THE REPUBLIC OF MOLDOVA 60

5.1 Coordination of the legal framework with the banking sector in Moldova to the directives of the European Union 60

5.2 Evaluation of the impact of the new reform of the banking sector in the context of the 63

Conclusion 66

致 谢 69

Bibliography 70

Chapter 1 DEVELOPMENT OF BANKING SYSTEM IN MOLDOVA AND ITS IMPACT ON NATIONAL ECONOMY

1.1Requirements for creation of the banking system in the Republic of Moldova

Formation of the modern banking system in the Republic of Moldova passed several stages of development, focusing on the goal of serving the economic relations of the era in question. Stages of development of the banking system were determined by general economic relations with neighboring countries and the specifics of the country in which Moldova was a part of a given historical period. The development of the banking system relates to the evolution of the currency and the currencies of our country's relations with other countries. The first banking operations were performed by moneylenders who were dealing with the exchange of currencies internally to support Moldova's trade relations with other countries. Apart from exchange transactions, bankers and moneylenders were granting annual loans interest. Also, apart from the exchange of currencies, before the year 1850, used in transactions and banking instruments such as checks, transfers, drafts, letters of credit.

The territory of Moldova in the 19th century apart from moneylenders and bankers-cooperative organizations existed. The problem of credit began to seriously worry economists and result in the year 1799 formed the first cooperative organization: "Artel", serving professional associations and organization "Mir" - for families buying or rent. The need for increased lending since usury was very expensive, particularly in Europe, and interest rates ranged between 60% and 240% per year for a cultivator. In such circumstances, it was proceeded to grant credit through cooperative organizations, actions which have magnitude since 1840 by establishing Peasant Houses and Peasant houses storage help. According to the legal norms of the two cooperative organizations is organized and the colonial Bank in Belgrade (1859) being officially recognized as a credit institution in the year 1868. Analyzing the period 1877-1919 noted that there is a large increase in the number of cooperative institutions, reaching number about 240 in the years 1906-1910. Although the beginnings of credit cooperative were so large, these institutions didn't have a future and not too evolved because it lacked the necessary economic conditions and population not perfect nor was the commitment and how to organize them. This Bank accepted deposits and granting credits towards running on policies and pledges, cargo, valuables, etc. One of the peculiarities of this Bank was supporting the trade. Interest on loans of the Urban Banks was 7-8% annually and is considered to be quite advantageous.

Immediately after the association of Bessarabia with Romania has entered a new period of economic development. There have been written laws, regulations, were undertaken important legislative and practical steps for the development of agriculture, industry, education etc. In support of these fields of the national economy were founded specialized banks. The National Bank of Romania was present through the recovery effort and the general health of the economy through lending and to maintain monetary stability. One of the biggest domestic banks what has worked over 20 years was being established in Bessarabia Bank June 1920. Bessarabia Bank through its 22 branches and agencies across the country lend industrialists, merchants, peasants, etc. Defending the interests of the well-to-do, the bank at the same time uniting the peasantry which was not able to pay within loans based mortgages. The Bank had branches, agencies and in some industrial centers of Bessarabia to Romania with which trade relations have stable: Bucharest, Constance, etc. However, the activity of these prosperous banks was suspended in June 1940, after the Soviet annexation of Bessarabia by Russia.

In the period between the two world wars a full development has met in Bessarabia and modern banks-credit cooperative form. These banks were serving the interests of the peasantry. If we refer to the need for cooperation, we can mention that a significant portion of the funds was specifically allocated through credit unions, which existed at that time within the banking system.