Identifying the criteria of efficient supervision to maintain the viability of the banking system. Abstract of the doctoral thesis in economic sciences

Abstract

The actuality and importance of the research topic. The financial crises of the 21st century have highlighted the vulnerabilities of the financial and banking sector and led to a rethinking of the international regulatory and supervisory framework for the banking sector. A historical and geographical review of economic crises shows that the most resounding ones were banking crises, with systemic effects and a knock-on impact on national and global economies. More and more experts argue that crisis prevention is a more efficient and less costly option than leaving developments to market rules. Thus, banking supervision has taken on an interventionist stance, and measuring the effects of supervision has become a stage in the supervisory process. Supervisory authorities must demonstrate that their efforts and actions are producing results and effects, and that banking supervision is efficient. The new regulations, in particular those promoted by the Basel III standards, aim to strengthen the capacity of supervisory authorities to manage banking risks and prevent financial crises. The transposition of the Basel III requirements in the Republic of Moldova has resulted in the creation of a new banking law, designed to strengthen the stability of the banking system, improve the resilience of the sector, and reduce the risk of contagion from the financial sector to the real economy. In this context, assessing the impact of supervision on the viability of the banking sector is of strategic importance. Thus, the author of the thesis set out to develop and calculate a composite indicator of banking viability and use it as an analytical tool to enable an objective assessment of the viability of the banking sector and analyze the efficiency of supervision from an opportunity cost perspective.