The Contribution of Banks towards the Formation of Capital Market Liquidity: the Case of Moldova

Abstract

The problem of low liquidity in the capital market of Moldova is addressed in several policy documents at the state level, noting that the low liquidity of the stock market has hampered the proper functioning of the domestic capital market and access to financing its means. In their view, improving the liquidity of the domestic capital market can be achieved through the active involvement of banks into capital market activities. In this article the phrase "banks" are envisaged licensed banks, and there is no reference to the central bank.