THE MODEL OF EVALUATION AND FORECASTING THE FINANCIAL STABILITY OF COMMERCIAL BANKS AND THE BANKING SECTOR IN THE REPUBLIC OF MOLDOVA

Anastasia BEJAN Academy of Economic Studies of Moldova

Abstract

The banking sector plays an important role in the economy, fulfilling specific functions that other infrastructures cannot replace. It has a key role in the functioning of the system of payments and settlements, being the subject of money issuance and the main institutional conductor of the state monetary policy, supporting and ensuring the financial flows in the country, which ensures the development of the economy. In addition, banks perform the traditional function of financial intermediation - depositing the savings of natural and legal persons and redirecting this money to: lending the economy, interbank investments, investments in securities, etc. In this context, the stability of the banking sector is the key for the development of the economy as a whole. This state of the banking sector is in the interest of all subjects who in one way or another are related to banks (citizens, economic agents, government, supervisory authority), and banks themselves. The instability of the banking system, whose prolonged duration leads to financial crises, leads to disruption of the normal functioning of the economy. This article is devoted to the elaboration of the model of evaluation and forecasting the financial stability of commercial banks and the banking sector in the Republic of Moldova. It can be an efficient tool for monitoring the evolution of the financial stability by the supervisory authority and banks’ management. Keywords: financial stability, commercial banks, banking sector, liquidity, assets quality, profitability, financial balance, evaluation, forecast.