Improvement of bank rating prudential supervision in the Republic of Moldova through European Union best practicies

Abstract

The main purpose of the rating is to increase the information transparency of the bank, to facilitate the arrangement of entities in the field of activity according to key success factors. The rating points assigned to the bank is identified with its competitive position in the banking system, which undoubtedly affects the image and trust of customers and investors. Therefore, assigning a specific rating to a bank affects its competitive position in the economy. The banking supervision function is aimed at ensuring the smooth functioning of the financial system based on a strong and competitive banking sector, focused on market relations and risk prevention. In this context, in prudential supervision, various rating systems are applied, their purpose is to monitor and analyze the financial condition of banks. In writing the article, the following scientific and methodological support was used: methods of analysis and synthesis, a monographic method, a comparison method, classification, methods of induction and deduction, methods of statistics and mathematical analysis, as well as a method of generalization. The purpose of the article is to deepen the study of bank rating as a consolidation tool for prudential supervision, as well as from the importance of this activity for ensuring the stability of the banking system in particular and of the financial system in general. CZU: [005.584.1:336.71.078.3](478):061.1EU JEL: E5, E58, E7, G21; DOI: https://doi.org/10.53486/cike2022.44