The financial systems of low-income countries usually dominated by their banking sectors are traditionally relatively isolated from international financial developments, given the limited access to external funding. With a relatively stable domestic financing from resident deposits, the critical threat to financial stability lies with these countries in the erosion of asset quality, with the Republic of Moldova demonstrating this exemplary. Corruption is a major barrier to economic progress in the Republic of Moldova and, by default, to the development of its banking system. Therefore, the structural reforms shall play a central role.