National Bank of Moldova tightens capital requirements for banks to curb credit expansion

CHISINAU. May 13 (Interfax) - The National Bank of Moldova (NBM) has increased the countercyclical buffer rate for banks by 1 percentage point to 1.5% in order to increase the resilience of the financial sector, the NBM's press service said, citing a decision by the regulator adopted in November last year.

The increased buffer rate of 1.5% has been applied since May 13, 2026; prior to this, from January 30, 2026, the rate was 0.5% (based on an NBM decision adopted last August), taking into account the average duration of the credit cycle. Until January 30, the buffer rate was 0%; previously, the NBM had repeatedly kept it at this level.

The regulator explained its decision in terms of the growth of credit expansion by banks.

The countercyclical buffer is an additional capital requirement applied to banks during periods of accelerated lending growth. The buffer size is calculated from the total amount of credit risk. The mechanism aims to prevent excessive lending growth in the banking sector. The countercyclical buffer rate in Moldova is reviewed quarterly.

The previously adopted NBM decision to curb the growth of banks' loan portfolios came into effect amid the tightening of monetary policy. On May 7, the NBM sharply raised the refinancing rate from 5% to 6.5% due to accelerating inflation amid the Middle East crisis, which led to higher energy prices.