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Corporate Governance – Determinant Of Moldovan Banking System Stability

Author

Listed:
  • Dorina CLICHICI

    (PhD, NIER)

  • Iulia LUPU

    (PhD, Financial and Monetary Research Centre “V. Slavescu” Romanian Academy, Romania)

Abstract

Recent events recorded in the banking sector of the Republic of Moldova – establishing special administration in three commercial banks by the National Bank of Moldova (NBM) – have highlighted the significant role which the quality of corporate governance presents for banking system. The aim of this paper is to identify the challenges of corporate governance for the stability of the Moldovan banking system and destabilizing effects of weak corporate governance structures within banking institutions and analyze the consequences of corporate governance deficiencies. For achieving the goal the author conducted a detailed analysis of normative acts regulating the banking system in order to identify the existing gaps regarding this subject and analyzed recent performances of commercial banks in Moldova. Despite some progress in addressing the recommendations of the International Monetary Fund (IMF) and the satisfactory reported performance of banks, there are serious governance problems in several banks including the largest ones.

Suggested Citation

  • Dorina CLICHICI & Iulia LUPU, 2015. "Corporate Governance – Determinant Of Moldovan Banking System Stability," Economy and Sociology, The Journal Economy and Sociology, issue 1, pages 93-96.
    • Handle: RePEc:aat:journl:190
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    References listed on IDEAS

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    1. Johan Devriese & Mathias Dewatripont & Dirk Heremans & Grégory Nguyen, 2004. "Corporate governance, regulation and supervision of banks," Financial Stability Review, National Bank of Belgium, vol. 2(1), pages 95-120, June.
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    3. Caprio, Gerard & Laeven, Luc & Levine, Ross, 2007. "Governance and bank valuation," Journal of Financial Intermediation, Elsevier, vol. 16(4), pages 584-617, October.
    4. Hamid Mehran & Alan Morrison & Joel Shapiro, 2011. "Corporate governance and banks: what have we learned from the financial crisis?," Staff Reports 502, Federal Reserve Bank of New York.
    5. Renee B. Adams & Benjamin E. Hermalin & Michael S. Weisbach, 2010. "The Role of Boards of Directors in Corporate Governance: A Conceptual Framework and Survey," Journal of Economic Literature, American Economic Association, vol. 48(1), pages 58-107, March.
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