Republic of Moldova: Financial Sector Assessment Program-Technical Note on Macroprudential Framework and Policies

This paper presents a Technical Note on Macroprudential Policies and Framework on the Republic of Moldova. Macroprudential governance has advanced following recent reforms yet clarifying mandates and strengthening coordination remain essential for timely and effective action. Tools have been deployed proactively and are broadly adequate, yet the macroprudential toolkit could be refined further. The institutional framework for macroprudential policy could be strengthened, and systemic risk analysis enhanced. The macroprudential toolkit is already broad but should be refined further. The capital framework should be strengthened by identifying and integrating early-warning indicators into a structured monitoring system and by enhancing lending surveys to improve forward-looking risk detection. A Systemic Risk Buffer would complement this by covering residual structural risks, for instance real-estate related. An illustrative calibration points to about a 1-percentage-point capital depletion from a housing correction, although limited history of real estate corrections may understate second-round effects.