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Weaknesses Of Corporate Governance Within The Banking Sector Of The Republic Of Moldova

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  • Dorina, CLICHICI

    (National Institute for Economic Research of the National Academy of Sciences of Moldova, Republic of Moldova)

Abstract

The article is a continuation of the research initiated by the author on corporate governance challenges for the stability of the banking system and destabilizing effects of weak corporate governance structures within banking institutions in the Republic of Moldova. The article has the purpose to identify weaknesses in corporate governance arrangements in the current banking system and presents the main recommendations for eliminating these deficiencies. In order to achieve this goal was performed an analysis of the legislation that regulates the banking system and of the corporate governance code currently in place. Despite some progress on implementing recommendations of the International Monetary Fund and the reported satisfactory performance of banks, the following deficiencies of corporate governance in the banking system were identified: opaque shareholders’ structures and the issue of ultimate beneficial owners disclosure; deficient quality of bank boards; the current corporate governance code does not consider essential elements recommended by the Basel Committee; the lack of a consistent concept on corporate governance in the banking system in Moldova aligned with Basel Committee's recommendations.

Suggested Citation

  • Dorina, CLICHICI, 2016. "Weaknesses Of Corporate Governance Within The Banking Sector Of The Republic Of Moldova," Contemporary Economy Journal, Constantin Brancoveanu University, vol. 1(3), pages 91-99.
    • Handle: RePEc:brc:brccej:v:1:y:2016:i:3:p:91-99
    as

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    References listed on IDEAS

    as
    1. World Bank, 2004. "Corporate Governance Country Assessment : Moldova," World Bank Publications - Reports 14500, The World Bank Group.
    2. World Bank, 2004. "India - Report on the Observance of Standards and Codes (ROSC) : Corporate Governance Country Assessment," World Bank Publications - Reports 14465, The World Bank Group.
    3. Campos, Nauro F. & Nugent, Jeffrey B., 1999. "Development Performance and the Institutions of Governance: Evidence from East Asia and Latin America," World Development, Elsevier, vol. 27(3), pages 439-452, March.
    4. World Bank, 2004. "Report on the Observance of Standards and Codes : Corporate Governance Country Assessment, Republic of Indonesia," World Bank Publications - Reports 14463, The World Bank Group.
    5. World Bank, 2013. "Republic of Moldova Enterprise Access to Finance : Background Note," World Bank Publications - Reports 16084, The World Bank Group.
    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    banks; supervisory authority; code of corporate governance; board of directors; audit committee; stakeholders;
    All these keywords.

    JEL classification:

    • G21 - Financial Economics - - Financial Institutions and Services - - - Banks; Other Depository Institutions; Micro Finance Institutions; Mortgages
    • G32 - Financial Economics - - Corporate Finance and Governance - - - Financing Policy; Financial Risk and Risk Management; Capital and Ownership Structure; Value of Firms; Goodwill
    • G38 - Financial Economics - - Corporate Finance and Governance - - - Government Policy and Regulation

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