Assessing the Impact of the Exogenous Drivers on the Resilience of the Moldovan Banking System

Abstract

The resilience of banking systems in the face of imminent external vulnerabilities and shocks is becoming vital in the modern world. The instability of national economies and the uneven economic development of individual states, fuelled by banking speculation, cause national banking crises. The latter become part of the global financial turmoil. In this sense, forming a resilient banking system, an essential constituent of a general economic model determining the country's future, becomes relevant. For the Republic of Moldova, creating a resilient banking system becomes a priority in joining the EU. For this, at the initial stage, it is necessary to elucidate the exogenous drivers influencing the resilience of the Moldovan banking system. In order to structure the exogenous factors after the impact level, ANOVA is applied. ANOVA allows a more profound and more accurate examination of the relationships between variables, the identification of hidden factors, and the creation of more accurate models for predicting the future values of these variables. Through ANOVA, we identified the dependencies between exogenous factors and determined which are more significant and which do not affect the resilience of the Moldovan banking system. Applying ANOVA, we determined how each of the exogenous drivers affects the resilience of banking systems, and based on the results obtained, ways to strengthen the resilience of the banking system will be further developed. These findings have practical implications for the future of the Moldovan banking system, providing a roadmap for strengthening its resilience and stability. UDC: 336.71-048.34(478); JEL: E3, F3, G21.