The Banking System of the Republic of Moldova

Abstract

The restrictive monetary policies implemented by the National Bank of Moldova have significantly influenced the behavior of individuals regarding credit. These policies, by increasing interest rates and mandatory reserves, have led to reduced accessibility to credit for both the general population and businesses. Consequently, net lending to legal entities has witnessed a significant decline, negatively impacting the economy. Meanwhile, the liquidity surplus has increased substantially, indicating a trend of hoarding funds in deposits or reducing lending to the business sector. This situation may imply a lack of confidence in the business environment or a stagnation in investments, affecting economic development and financial stability. CZU: 336.71(478); JEL: G210, E430