This is provided for in a draft amendment to the Law on Banks Recovery and Resolution, developed by the National Bank of Moldova (NBM) and promoted by the Ministry of Finance, aimed at fully transposing the updated European Directive 2014/59/EU (BRRD). The bill proposes to significantly expand and align with EU standards the legislation on the recovery and resolution of financial institutions, extending the current regime—which applies only to banks—to investment companies, financial and mixed holding companies, their subsidiaries, as well as branches of credit institutions and investment firms from third countries registered in the country. Under the draft, the NBM will retain its functions as the regulator of credit institutions, while the CNPF will be granted similar powers with respect to investment companies and their affiliated entities. A separate resolution fund will be established for investment companies, to be managed by the CNPF. It will be financed by annual and, if necessary, extraordinary contributions from market participants, the amount of which will be adjusted based on their risk profile. Fund resources may be used to provide guarantees and loans to an organization undergoing resolution, to finance a bridge company or asset management structure, to acquire assets, and to pay compensation to shareholders or creditors, but not to directly cover losses or recapitalize a distressed company. The draft also introduces regulations for the recovery and resolution of financial groups, including provisions for the development of group plans, intra-group financial support, early intervention, coordination with competent authorities in other countries, etc. Banks and other entities covered by the regime will be required to comply with minimum requirements for own funds and eligible liabilities (MREL), which will enable them to absorb losses and conduct internal recapitalization without drawing on public funds. Full compliance with these requirements is scheduled for December 31, 2035, which will give banks time to restructure their financing and issue appropriate instruments in Moldova’s currently underdeveloped capital market. At the same time, it is proposed to change the target level of the banking resolution fund: as of January 1 of the fourth year following the signing of Moldova’s EU accession treaty, but no earlier than January 1, 2034, it will amount to 1% of the aggregate volume of covered deposits of all licensed credit institutions, instead of the current level of 3%; until then, the NBM will set interim targets, taking into account the phased increase in guaranteed deposit coverage up to the equivalent of 100,000 euros. The main provisions of the law are proposed to take effect 12 months after publication in Monitorul Oficial (the Official Journal of Moldova). Provisions regarding cross-border groups, cooperation with European authorities, and other provisions related to EU membership status will take effect upon Moldova’s accession to the European Union. // 30.07.2026 - InfoMarket.