The Republic of Moldova Financial System Adjustment to the European Monetary Order

Abstract

The aspirations of the Republic of Moldova to become an EU member state send an essential message to both the national economy and the financial system; the accession process will mark the economic and financial developments of the Republic of Moldova. Also, this message reinforces the conclusion that economic - mainly financial - integration must be carefully monitored and managed but not delayed. Such a conclusion confers a severe responsibility on all participants in the Moldovan financial system. As a result, the purpose of the publication is to analyze the financial system of the Republic of Moldova from the perspective of the European monetary order to identify its non-conformities. For this purpose, a three-dimensional matrix is built, correlating the EU criteria regarding the national financial systems with those of the Republic of Moldova. As a result of the analysis, it was highlighted that the ability of the Moldovan financial sector to provide financial services largely depends on the support of financial infrastructure institutions. Therefore, infrastructure institutions are needed, which could, on the one hand, reduce risks and vulnerabilities and, on the other hand, ensure the efficient functioning of the financial system. The matrix's design not only elucidated the existing inconsistencies but also enabled the identification of potential solutions. These solutions not only correspond to the EU requirements but also hold promise for the future, instilling a sense of hope about the potential of the Moldovan financial system. This study concludes that although the Moldovan financial system's configuration is essentially in agreement with EU norms, there are still inconsistencies that need to be corrected. CZU: 336.02(478):061.1EU; JEL: E44, E58, F02