Liquidity Risk Assessment in Moldovan Banks Amid the Harmonization of National Legislation with EU Standards

Abstract

Liquidity risk assessment has gained increasing relevance in the context of the Republic of Moldova’s regulatory alignment with European Union standards, given its systemic nature and its critical role in ensuring bank’s ability to meet payment obligations without incurring significant losses. This study examines both the quantitative and qualitative dimensions of liquidity risk management, highlighting the transition toward the Basel III framework through the implementation of the Liquidity Coverage Ratio (LCR) and the Net Stable Funding Ratio (NSFR), alongside the Internal Liquidity Adequacy Assessment Process (ILAAP). An analysis of the national banking sector reveals liquidity levels significantly above regulatory threshold and EU benchmarks, indicating a strong capacity to withstand liquidity shocks and maintain funding stability. At the same time, this configuration reflects structural characteristics such as limited financial intermediation and excess liquidity, underscoring the need to enhance the efficiency of liquidity utilization while preserving prudential resilience. CZU: 336.71:347.73(478+4EU); JEL: G21, G28, G32