1.

Key rates regulated EXCLUSIVELY by the Central Bank:

Interest rate- the most visible and obvious power of many modern central banks is
interest rate. In countries using a centralized banking model, interest rates are determined
by the central bank. In the first step of interest rate determination, the government's
economic observers create a policy that helps ensure stable prices and liquidity for the
country. This policy is routinely checked to ensure that the supply of money within the
economy is neither too large (causing prices to increase) nor too small (causing prices to
decrease). Canada-1% in september, Brazil-8,5 percent in september.

Minimum capital required to fund a bank- Naturally, regulators would hold the view
that banks should hold more capital, so as to ensure that insolvency risk and the
consequent system disruptions are minimised. capital is required for banks to operate
smoothly because capital provides protection. The critical question is how much, and
what type of, capital a bank needs to hold so that it has adequate protection.In the
simplest form, capital represents the portion of the banks liabilities which does not have
to be repaid and therefore is available as a buffer in case the value of the bank's assets
decline. If banks always made profits, there would be no need for capital. In the event
that the banks asset value is lower than its total liabilities, the bank becomes insolvent
and equity holders are likely to choose to default on the banks obligations. Bosnia and
Herzegovina -7.7 mil. Euros, Serbia -10 milion euros.

Reserves- As a rule, central banks mandate banks to keep a certain amount of funds in
reserve . Thus a certain amount is kept in reserve, and this does not enter circulation. The
ratio is calculated as a proportion of customer deposits and determines how much
commercial banks must set aside. Ex: Central African Republic-0%, Moldova- 32%.
This is aimed to control the amount of money on the market and protect depositors in
case of bankruptcy.

Official exchange rate-Official exchange rate is determined by the central bank and
may be closer or further to the exchange rate formed on the foreign exchange market.
The exchange rate is used for various settlement operations, evaluations, statistics,
reports. To determine the official exchange rate of MDL against USD, considered as
 reference currency in the Republic of Moldova, it is used the arithmetic average of the
average purchase and sale exchange rate weighted to the spot transactions volume
conducted on the foreign exchange market of the Republic of Moldova between 12.30
PM of the previous working day and 12.30 PM of the reporting day. Official exchange
rate of Moldovan Leu against another currency is determined by multiplying the official
exchange rate against the U.S. dollar with the cross exchange rate of the respective
foreign currency against the U.S. dollar established on the international market at 2:00
PM, Chisinau time.

Prices for gold and silver- The gold price and the silver price are determined by the
National Bank of Moldova each working day and become valid starting with the next
working day.
Liquid assets ratio- this is measure to ensure banks hold sufficient liquid assets. The
ratio is simple and requires the bank to hold an amount equivalent to 10% of its total
balance sheet liabilities in high quality liquid assets, which are: Cash, Central Bank CDs,
Federal Government Bonds (when they become available), and all reserves and account
balances held at the Central Bank. This ratio will be periodically reassessed and if
necessary adjusted to reflect the appropriate Central Bank policy. Taiwan-7 %, Lithuania
30%.