Resolution of National Bank of the Republic of Moldova "About approval of the Instruction about procedure for creation and submission of reports of FINREP by banks..."

It is registered

Ministry of Justice

Republic of Moldova

On February 16, 2018 No. 1306

RESOLUTION OF NATIONAL BANK OF THE REPUBLIC OF MOLDOVA

of March 2, 2018 No. 42

About approval of the Instruction about procedure for creation and submission of reports of FINREP by banks at the individual level

(as amended on 28-04-2020)

Based on the item d) parts (1) the Art. 5, parts (1) the Art. 11, the item d) parts (1) the Art. 27, the item and) Art. 44 of the Law on National Bank of Moldova No. 548-XIII of July 21, 1995 (переопубликован: The official monitor of the Republic of Moldova, 2015, No. 297-300, the Art. 544), with subsequent changes and amendments, and Art. 84 and 86 of the law on activities of banks No. 202 of October 06, 2017 (The official monitor of the Republic of Moldova, 2017, No. 434-439, the Art. 727) the Executive committee of National Bank of Moldova DECIDES:

1. Approve the Instruction about procedure for creation and submission of reports of FINREP by banks at the individual level.

2. Declare invalid the Resolution of Administrative board of National Bank of Moldova No. 292 of December 15, 2011 about approval of the Instruction about the financial reporting FINREP at the individual level applied to banks (The official monitor of the Republic of Moldova, 2011, No. 227-232, the Art. 2104), registered in the Ministry of Justice of the Republic of Moldova at No. 1170 of December 15 2016, with subsequent changes and amendments.

3. Reports of FINREP for January 31, 2018 and on February 28, 2018 will be provided according to the requirements established by the Instruction specified in Item 1, no later than March 23, 2018.

Vice-chairman of Executive committee of National Bank of Moldova

Vladimir Muntyanu

Approved by the Resolution of Executive committee of National Bank of the Republic of Moldova of March 2, 2018 No. 42

The instruction about procedure for creation and submission of reports of FINREP by banks at the individual level

Chapter I. General provisions

1. This Instruction establishes procedure for creation and representation to National Bank of Moldova (further - NBM) the reports containing financial information and is applied to banks to legal entities of the Republic of Moldova, including to their departments abroad, and also to departments of banks of other states to the activities performed by them in the Republic of Moldova (further - banks).

2. Banks constitute and NBM submit reports of FINREP at the individual level (further - reports) according to the requirements established in appendices to this instruction.

3. Reports reflect transactions and financial condition of banks, including its departments abroad, for the end of operational day of the accounting period (month, quarter, half-year, as necessary).

4. In case of creation of reports provisions of the Chart of accounts of the financial accounting in licensed banks of the Republic of Moldova approved by Administrative board of National Bank of Moldova of March 26 1997, with subsequent changes and amendments (further - the Chart of accounts), and also International accounting standards (further - MSFO(IFRS)) and International accounting standards will be applied (further - MSFO(IAS)).

5. In this instruction the following reducings are used:

a) "KIMFO(IFRIC)" - Interpretations of Committee on interpretation of the international financial reporting;

b) "CRR" - Regulations (EU) No. 575/2013 of the European Parliament and Council of the June 26, 2013 about prudential requirements to credit institutions and investment firms making changes and additions to Regulations (EU) No. 648/2012, JO L 176, 27.06.2013, items 1-337;

c) "Appendix V" - Appendix V of Regulations on application (EU) No. 680/2014 of the Commission of April 16, 2014 about establishment of some technical standards on application about the reporting for the purpose of supervision of organizations according to Regulations (EU) No. 575/2013 of the European Parliament and Council; JO L 1ob 91/1, 28.06. 2014, item 1 - 1861;

d) "BCE/2013/33" or "Regulations of BCE BSI" Regulations (EU) No. 1071/2013 of the European Central Bank of September 24, 2013 about balance of the sector monetary financial institutions (reforming) (BCE/2013/33), JO L 297, 07.11. 2013, item 1.

e) "impairment stages" - categories of impairment according to determination of MSFO(IFRS) 9 (Item 5.5.5.).

f) "stage 1" - belongs to the impairment estimated according to MSFO(IFRS) 9, Item 5.5.5.;

g) "stage 2" - belongs to the impairment estimated according to MSFO(IFRS) 9, Item 5.5.3.;

h) "stage 3" - belongs to asset impairment as a result of credit risk, according to determination of appendix A, MSFO(IFRS) 9.

i) "from which: adverse" - treats nominal value of credit obligations, financial guarantees and other obligations which are considered adverse according to Items 213-239 of appendix V;

6. In reports of the amount are specified in national currency if according to the procedure of creation of the report other is not provided.

7. Means in foreign currency are converted into Moldovan lei on the official rate of Moldovan leu in relation to foreign currency established by National Bank of Moldova on reporting date if according to the procedure of creation of the report other is not provided.

8. The indicators containing minus sign(s) are reflected as the negative amounts, other indicators are reflected as the positive amounts, except as specified, when it is determined opposite to regular remaining balance for the necessary reporting amounts (credit balance for accounts of class Assets or Expenses; debit balance for accounts of class of the Obligation, the Capital and reserves, the Income.

9. Information on the account of profit or loss, and also on movement of different elements of balance is of the sum, registered on expenditure accounts and the income, according to transaction, performed since the beginning of financial year to reporting date inclusive. This principle is applied also in case of data which according to this Instruction belong to certain period (month, quarter, half-year).

10. In sense of this Instruction, as for recognition / derecognition of financial assets in balance / from balance, applies banks consistently, using initial approach for all previous otchetnost, or date of the conclusion of the transaction (date for which the bank assumed obligation to acquire or sell asset), or settlement date (date for which the asset is actually delivered / received), according to the domestic policy and methods of conducting financial accounting approved by management of bank.

11. Are applied by IFRS (IFRS) in case of the reports submitted by banks as of June 30 and on December 31. Banks can apply corresponding to MSFO(IFRS) more often.

12. Before submission of the report to National Bank of Moldova the amounts are compared with the amounts of the previous reports. If there are considerable changes in relation to previous periods, along with the report the explanatory note in which the reasons of introduction of these changes are described is submitted.

13. In case of creation of reports, banks, depending on circumstances, will take into account acts NBM of measures or the applied sanctions to banks and the received notifications according to Article 75-1 part (10) the Law on National Bank of Moldova if the violations connected with the reporting were found.

Chapter II. Terms and form of submission of reports

14. Reports are submitted according to the Instruction about procedure for submission of reports electronically in National Bank of Moldova approved by the Resolution of Executive committee of National Bank of Moldova No. 245/2019.

15. Banks constitute reports for representation of NBM, meaning the following reporting dates:

1) monthly reporting: last day of month;

2) quarterly reporting: On March 31, on June 30, on September 30 and on December 31;

3) semi-annual reporting: On June 30 and on December 31.

16. For submission of reports of NBM banks observe the following terms of the reporting:

1) monthly reporting: within no more than 8 working days from reporting date;

2) monthly reporting: within no more than 15 calendar days from reporting date;

3) semi-annual reporting: within no more than 15 calendar days from reporting date.

17. If limiting date of the reporting is festive non-working day, Saturday or Sunday, reports are submitted no later than the end of the next working day.

18. After consideration of annual financial reports at general shareholder meeting, but no later than April 30, banks shall submit repeatedly to National Bank of Moldova reports, foreseen this instruction, electronically as of December 31, changed as a result of audit. Along with reports the detailed written explanatory note on paper on the performed adjustments electronically goes.

19. The explanatory notes mentioned in Items 12 and 18 of this Instruction make sure the signature of person authorized by bank and, depending on circumstances, by application of seal of bank, and are represented to NBM in the original.