OREANDA-NEWS. March 10, 2009. Based on art.17 of the Law on the National Bank of Moldova no.548-XIII of July 21, 1995, the National Bank of Moldova shall prescribe to banks the maintenance of required reserves. Required reserves (RR) represent the minimum level of attracted means that a licensed bank is requested to maintain with NBM. Required reserves are used with the purpose of changing the short-term reserve money request and the short-term interest rate, accordingly.

Banks shall keep their required reserves separately in Moldovan Lei and in free convertible currency (USD and EUR) on accounts opened with the National Bank of Moldova. Banks make up their RR out of the means attracted in the respective currencies, reflected in banks’ balance sheets on the accounts of the 2nd class “Liabilities”, at a rate established by the Council of administration of NBM.

Reserving from means attracted in MDL and non-convertible currencies shall be conducted by maintaining funds in MDL with the National Bank of Moldova on bank’s Loro account on average per period. Banks maintaining required reserves in MDL on Loro accounts with NBM are established bimonthly tracing periods of attracted means (06th-20th of the current month; 21st of the current month - 05th of the following month) and the maintenance period (21st of the current month – 05 of following month; 06th-20th of the following month), respectively.

Reserving from means attracted in FCC shall be conducted by maintaining funds in FCC with the National Bank of Moldova on Required reserves account in FFC. For required reserves in FCC are established the same bimonthly tracing periods of attracted means (06th-20th of the current month; 21st of the current month - 05th of the following month) and replenishment terms of required reserves account in FCC with NBM shall be established the follow-up periods - the 27nd of the current month at the latest, but not later than the 12th of the next month, respectively.

The National Bank shall remunerate the portion of required reserves balances that exceeds 5 per cent of the liabilities on which required reserves are based. Payments for RR shall be made on a monthly basis, after the 15th of the current month, for the previous calendar month. Required reserves in MDL and in FCC are remunerated at distinct rates, by applying the overnight deposits rate of interest rate corridor of NBM for required reserves maintained in MDL, and for required reserves maintained in FCC – the average rate on interest-bearing sight deposits attracted by the banking system in FCC, calculated monthly by the National Bank of Moldova based on monthly reports on the average rate on deposits attracted by banks.

The rates applied by NBM on payments for required reserves maintenance shall be established and modified by the Council of administration of NBM.