BANK INNOVATIONS: THEORETICAL ASPECTS AND IMPLEMENTATION IN THE REPUBLIC OF MOLDOVA

Abstract

The efficiency of the bank's activity, its competitiveness on market largely depends on implementation of new products, technologies and banking processes. This article relates theoretical key issues in defining bank innovations, as well as describes the process of developing innovative products by commercial banks.  The final part of the study describes the main barriers that slow down the successful implementation of financial innovations in the bank sector of the Republic of Moldova. Moreover, there are given some solutions to redress the situation for the efficient implementation of innovations in the domestic financial market. Poor performances in the development of innovations on the Moldovan bank market arise from insufficient knowledge of banks as issuers, investors as buyers of risk and intermediary companies, as well as lack of regulation of the innovation process in bank sector which would clearly explain and regulate the issuance and trading mechanism of some new innovative bank products. The financial market in Moldova also needs a favorable legal, fiscal and accounting system. For the realization of the scientific article, a series of specific methods of research of economical problems, such as logical (analysis and synthesis), systemic, comparative and classification methods, were used as a methodological basis.