The EU High Level Advisers’ Mission, together with the National Bank of Moldova (NBM) organised a seminar dedicated to the main technical aspects related to the management of interest rate risk associated with activities outside the trading portfolio that must be taken into account in the supervisory authority’s evaluation process. The event brought together NBM employees and provided a valuable platform for dialogue and exchange of experience in the field.
At the opening of the event, the vice-governor of the National Bank of Moldova, Constantin Șchendra, emphasized the importance of this risk, as well as the need to evaluate it exclusively, explicitly and comprehensively in the processes of risk management and evaluation of internal capital. He highlighted the relevance of the seminar for knowledge and best practices sharing and the NBM’s commitment to integrate international standards to improve risk management.
Nicolae Grigore, EU High Level Adviser in the field of financial services, presented a series of essential aspects regarding the identification, management and quantification of the Interest Rate Risk (IRRBB), specifically: governance strategy, management framework and responsibilities, risk appetite, policies, processes and risk control measures. Additionally, during the seminar, principles governing the management and supervision of exposure to this risk, as established by the Basel Committee on Banking Supervision, as well as best European practices in the field, were presented.
Practices for supervising interest rate risk associated with non-trading portofolio activities were also presented during the seminar, focusing on the essential technical and procedural aspects in evaluating this risk by supervisory authorities.
This seminar represented yet another important step in strengthening knowledge and practices related to interest rate risk in the banking sector in Moldova. It provided an opportunity to explore principles and methods for managing this risk, thereby contributing to the development of better practices in the field.